OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Juniata Mutual Insurance Company (JMIC) (McAlisterville, PA).
The Credit Ratings (ratings) reflect JMIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The negative outlooks reflect AM Best’s expectation of continued pressure on JMIC's operating performance assessment over the intermediate term, driven in part by an elevated underwriting expense ratio. While the company continues to execute a viable turnaround strategy, it faces persistent competitive market conditions, creating heightened execution risk.
JMIC’s strong balance sheet strength assessment is supported by very strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), and positive five-year growth in policyholders’ surplus, partially offset by limited financial flexibility and scale of operations. JMIC’s limited business profile assessment is driven largely by its geographic concentration in Pennsylvania, which exposes results to weather-related events, as well as potential judicial, economic or regulatory challenges. Additionally, JMIC’s ERM capabilities are considered appropriate for its risk profile.
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