AM Best Revises Outlooks to Stable for Mid-Hudson Group’s Members

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” (Good) of Claverack Cooperative Insurance Company, Midrox Insurance Company, and Mid-Hudson Co-Operative Insurance Company. These companies are collectively referred to as Mid-Hudson Group (MHG) and are domiciled in Montgomery, NY.

The Credit Ratings (ratings) reflect Mid-Hudson Group’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks to stable from negative reflect improvements in MHG’s operating profitability as well as its risk-adjusted capitalization, in 2025 and continuing in 2026, while also recognizing the group’s appropriate ERM when assessing, measuring and mitigating its catastrophe risk through reinsurance.

Additionally, the revision of the outlooks to stable from negative reflects MHG’s improved operating performance metrics following multiple corrective actions implemented by management. This led to the company reporting favorable underwriting income and pre-tax operating gains in 2025, as well as its lowest combined ratio during the latest five-year period (2021-2025). The corrective actions implemented included tightening of underwriting guidelines; reductions in habitational and farm owner exposures, as well as multiple rate increases that restored profitability to the company following a period of volatility.

MHG’s adequate balance sheet strength assessment is positioned comfortably with over 16% surplus growth in 2025 and supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). MHG’s limited business profile assessment remains appropriate given the company’s geographic concentration in New York State, while its ERM program reflects capabilities that are aligned with the scope and scale of the company. MHG is a personal property carrier that writes commercial multi-peril, dwelling fire and homeowners coverages.

Negative rating action could occur with a deterioration in overall risk-adjusted capitalization, and/or the increase in underwriting leverage measures and adverse reserve development that weakens overall balance sheet metrics. Positive rating action could occur with an overall improvement in balance sheet metrics as reflected by decreased underwriting leverage measures, consistent patterns of favorable reserve development and increased policyholder surplus.

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