AM Best Revises Issuer Credit Rating Outlook to Negative for Ophthalmic Mutual Insurance Company (A Risk Retention Group)
OLDWICK, N.J.--(BUSINESS WIRE)--Feb 22, 2019--AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICR of “a+” of Ophthalmic Mutual Insurance Company (A Risk Retention Group) (OMIC) (Burlington, VT). The outlook of the FSR remains stable.
The ratings reflect OMIC’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The revised Long-Term ICR outlook reflects the reduction in underwriting and operating performance in 2017 and 2018 and the challenges that OMIC faces to improve results in the near term. Underwriting results in earlier years benefited from significant favorable development of prior accident year loss reserves, resulting in strong operating performance in those years. However, margins have compressed in recent years following the impacts of a rate decrease in 2016 and rising severity, as well as slight adverse development in 2017 and 2018, which placed the company’s profitability more in line with its peers. However, we emphasize that despite the recent underwriting results, OMIC’s risk-adjusted capitalization remains at the strongest level.
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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view .
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190222005465/en/
CONTACT: Edward J. Zonenberg
Senior Financial Analyst
+1 908 439 2200, ext. 5135
Manager, Public Relations
+1 908 439 2200, ext. 5159
email@example.comSharon Pereira Marks
Senior Financial Analyst
+1 908 439 2200, ext. 5477
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 02/22/2019 02:36 PM/DISC: 02/22/2019 02:36 PM