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A.M. Best Upgrades Issuer Credit Ratings of Concord Group Insurance Pool Members; Affirms Credit Ratings of Auto-Owners Insurance Company and Certain Subsidiaries

August 30, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Aug 30, 2018--A.M. Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of the members of Concord Group Insurance Pool (Concord Group), which is led by Concord General Mutual Insurance Company (Concord General) (Concord, NH). The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook for the FSR remains stable. (See below for a detailed listing of the companies). Concurrently, A.M. Best has affirmed the FSR of A++ (Superior) and the Long-Term ICR of “aa+” of Auto-Owners Insurance Company (Auto-Owners) and its four wholly owned property/casualty (P/C) companies that comprise Auto-Owners Insurance Group (AOIG). (See below for a detailed list.) Also, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of Atlantic Casualty Insurance Company (Atlantic Casualty) (Goldsboro, NC). In addition, A.M. Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” of Auto-Owners Life Insurance Company (AOLIC), also a wholly owned subsidiary of Auto-Owners. The outlook of these Credit Ratings (ratings) is stable. All of the companies are domiciled in Lansing, MI, unless otherwise noted.

The ratings of Concord Group reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating actions reflect significant operating and financial benefits that Concord Group has realized as a result of its April 2017 affiliation with Auto-Owners, which is a highly rated, super-regional insurer with more than $10 billion in policyholders’ surplus. In addition to achieving efficiencies and savings from scale, Concord Group is benefiting from Auto-Owners’ expertise and support in a number of areas, including underwriting, claims, actuarial, product development, information technology and risk management. Furthermore, Auto-Owners provides Concord Group with a comprehensive excess of loss reinsurance program and centralized investment management.

The ratings of AOIG reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and appropriate ERM.

AOIG has exhibited generally improved underwriting and operating performance over the past six years. AOIG also maintains a business profile that is balanced between personal and commercial lines and P/C business. Through its acquisition of Atlantic Casualty in 2016 and its affiliation with Concord General in 2017, Auto-Owners has further broadened its business profile from a product and geographic perspective. These positive rating factors are offset partially by its exposure to credit risk associated with the Michigan Catastrophic Claims Association.

The ratings of Atlantic Casualty reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.

Since its acquisition, Auto-Owners has increasingly supported Atlantic Casualty in various functions including, but not limited to: actuarial services, product development, reinsurance, claims, marketing and information technology. The ratings also reflect Atlantic Casualty’s improved operating performance, especially over the past three years.

The ratings of AOLIC reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

The ratings also reflect AOLIC’s integral role and positive contribution to its P/C parent organization, diversified product portfolio, its favorable level of risk-adjusted capitalization and high quality investment portfolio. In addition to these rating factors, the company’s solid and steady operating results partially offset its geographical business concentration risk.

The Long-Term ICRs have been upgraded to “a+” from “a” and the FSR of A (Excellent) has been affirmed for the following members of Concord Group Insurance Pool. The outlook of the Long-Term ICRs has been revised to stable from positive, while the FSR outlook remains stable.

Concord General Mutual Insurance Company Green Mountain Insurance Company, Inc. State Mutual Insurance Company Sunapee Mutual Fire Insurance Company Vermont Accident Insurance Company, Inc.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed, each with a stable outlook, for Auto-Owners Insurance Company and its wholly owned subsidiaries:

Home-Owners Insurance Company Owners Insurance Company Property-Owners Insurance Company Southern-Owners Insurance Company

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 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/20180830005557/en/

CONTACT: A.M. Best

Robert Valenta, +1-908-439-2200, ext. 5291

Senior Financial Analyst—P/C

robert.valenta@ambest.com

or

David Marek, +1-908-439-2200, ext. 5340

Financial Analyst—L/H

david.marek@ambest.com

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA MICHIGAN NEW HAMPSHIRE NEW JERSEY NORTH CAROLINA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 08/30/2018 10:55 AM/DISC: 08/30/2018 10:55 AM

http://www.businesswire.com/news/home/20180830005557/en

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