AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of ECM Insurance Group Members
AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a" (Excellent) of Everett Cash Mutual Insurance Company (Everett Cash Mutual), American Reliable Insurance Company (Phoenix, AZ) and 1st Choice Advantage Insurance Company, Inc., which comprise ECM Insurance Group (ECM). Concurrently, AM Best has removed from under review with developing implications and affirmed the FSR of B++ (Good) and the Long-Term ICR of "bbb+" (Good) of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. All companies are domiciled in Everett, PA unless otherwise noted. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of ECM reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings have been removed from under review with negative implications following the successful execution of management's capital action plan structured to recapitalize the balance sheet. As part of the plan, ECM's financial flexibility was demonstrated as reflected by the most recent capital raise in 2023 to support future growth and diversification initiatives. The stable outlooks reflect AM Best's expectation that ECM will maintain very strong overall balance sheet strength supported by the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), with adequate operating performance that contributes to organic surplus growth needed to support the expanding book of business.
The ratings of Ever-Greene reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, very limited business profile and appropriate ERM.
While Ever-Greene's risk-adjusted capitalization has declined from prior years due to the recent implementation of a quota share with Everett Cash Mutual, it remains at the strongest level, as measured by BCAR. Continuation of rating enhancement is based on the quota share and the greater role that Ever-Greene plays in the group's overall business strategy. The stable outlooks reflect AM Best's expectation that Ever-Greene will maintain strong overall balance sheet strength supported by risk-adjusted capitalization maintained at the strongest level, as measured by BCAR, inclusive of the quota share with Everett Cash Mutual. In addition, AM Best expects volatility in Ever-Greene's operating performance to remain low to moderate, supportive of the strong assessment.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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