A.M. Best Co. has revised the outlook to stable from negative and
affirmed the financial strength rating of B++ (Good) and issuer credit
rating of "bbb" of Wayne Mutual Insurance Company (Wayne)
The revised outlook reflects Wayne's improved operating results and
adequate level of risk-adjusted capitalization, despite frequent and
severe weather-related events that occurred in the company's operating
territory. The company has adhered to disciplined underwriting practices
over several years while maintaining strong relationships with its
long-standing agency network. The revised outlook further recognizes
A.M. Best's expectation that the company's operating performance and
capitalization will continue to improve as management's underwriting and
operational strategies are fully realized.
As a property predominant writer with a geographic concentration in
Ohio, Wayne's earnings remain susceptible o localized and severe
weather-related events as well as changes in the regulatory environment
and increasingly competitive market conditions. Underwriting
profitability remains one of management's key objectives, driven by
adequate pricing, continued growth in small commercial business as well
as technological and product enhancements.
Factors that could trigger negative rating actions include above average
premium growth or significant deterioration in Wayne's operating
performance causing a material decline in its risk-adjusted
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: "Risk
Management and the Rating Process for Insurance Companies"; "Catastrophe
Analysis in A.M. Best Ratings"; and "Understanding BCAR for
Property/Casualty Insurers." Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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