AM Best Revises Outlooks to Stable for Members of Barnstable Group

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) for the members of Barnstable Group (Barnstable): Barnstable County Mutual Insurance Company and its wholly owned subsidiary, Barnstable County Insurance Company. Both companies are domiciled in Yarmouth Port, MA.

These Credit Ratings (ratings) reflect Barnstable’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 stable outlooks reflect an improvement in Barnstable’s underwriting performance in recent years that has resulted in five-year underwriting and operating performance metrics outperforming the personal property composite average. While underwriting results have been, at times, impacted by weather-related volatility, Barnstable continues to produce strong overall underwriting and operating performance that have resulted in further growth in surplus. While the five-year loss ratio remains materially better than the composite average, this is partially offset by the company’s elevated expense position, which together yields a combined ratio average that outperforms the composite average. Other key performance indicators including five-year return on revenue and operating ratio, are also substantially better than the composite average.

The group’s very strong balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio, favorable loss reserve development and underwriting leverage that is considerably below the composite average. The limited business profile reflects the group’s focus as a niche homeowner writer specifically in Cape Cod, MA, and its surrounding coastal counties. AM Best considers the group’s ERM practice as appropriate, as management diligently reviews various catastrophe models and maintains a comprehensive reinsurance program to ensure it appropriately mitigates the risk given its narrow geographic footprint.

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