AM Best Upgrades Credit Ratings of Briar Creek Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Briar Creek Mutual Insurance Company (BCMIC) (Bloomsburg, PA). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect BCMIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The rating actions reflect BCMIC’s increased balance sheet strength, driven by risk-adjusted capitalization at the strongest level, as measured by Best’s Credit Rating Adequacy (BCAR), significant growth in policyholders’ surplus over the past five years primarily driven by strong operating earnings, stable loss reserving trends, a comprehensive reinsurance program with strong partners, and a high-quality investment portfolio consisting of a diverse blend of fixed-income securities and equity holdings. These positive rating attributes are offset partially by the company’s limited financial flexibility and scale of operations.

AM Best assesses BCMIC’s operating performance as strong due to consistent and profitable underwriting results over the long term; a combined ratio that historically outperforms the industry composite and U.S. property/casualty market averages; return on revenue measures, which also outperform the same respective benchmarks, and consistently low operating volatility.

AM Best assesses BCMIC’s business profile as limited, due to its geographic concentration in Northeast Pennsylvania, which exposes results to frequent and severe weather-related events, as well as potential judicial, economic, competitive, or regulatory challenges. BCMIC’s ERM is assessed as appropriate due to an evolving risk management framework, and risk management capabilities that remain appropriately commensurate with the complexity of the business.

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