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A.M. Best Revises Outlooks to Stable for Agency Insurance Company of Maryland, Inc.

October 25, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Oct 25, 2018--A.M. Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Agency Insurance Company of Maryland, Inc. (AIC) (Hanover, MD).

The ratings reflect AIC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management (ERM).

The revision in the outlooks to stable reflects the company’s steady increase in net and gross underwriting leverage ratios over the latest five-year period due to its significant premium growth, which has come from the company’s personal auto book and its entry into the commercial auto space.

AIC’s adequate balance sheet strength reflects the company’s strong overall risk-adjusted capitalization, conservative investment portfolio and favorable reserve development. However, AIC’s net and gross underwriting leverage ratios are elevated and compare unfavorably with the nonstandard auto composite. As a result, policyholder surplus and operating results are exposed to potential adverse underwriting, pricing and claims trends. The strong operating performance reflects the company’s underwriting results, which when coupled with steady net investment income, have generated consistent pre-tax operating profits. AIC maintains a limited business profile as a writer of personal and commercial automobile in three states. ERM is appropriate for AIC’s risk profile as the company continues to develop and improve its risk management capabilities in the mid-Atlantic auto market.

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/20181025005909/en/

CONTACT: A.M. Best

Bobby Skrabal, +1 908 439 2200, ext. 5792

Financial Analyst

bobby.skrabal@ambest.com

or

Joseph Burtone, +1 908 439 2200, ext. 5125

Director

joseph.burtone@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 NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 10/25/2018 02:51 PM/DISC: 10/25/2018 02:50 PM

http://www.businesswire.com/news/home/20181025005909/en

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