A.M. Best Co. has assigned a financial strength rating (FSR) of A
(Excellent) and an issuer credit rating (ICR) of "a" to MEMIC
Casualty Company (MEMIC Casualty) (Burlington, VT). The outlook
assigned to both ratings is stable.
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICRs
of "a" of MEMIC Casualty's parent, Maine Employers' Mutual Insurance
Company (MEMIC) (Portland, ME), and MEMIC's other wholly-owned
subsidiary, MEMIC Indemnity Company (MEMIC Indemnity)
(Manchester, NH). All three are collectively referred to as MEMIC Group.
The outlook for these ratings is stable.
The ratings assigned to MEMIC Casualty reflect its strong
capitalization, strategic importance to MEMIC Indemnity providing an
alternative rating approach, as well as the explicit financial support
The rating affirmations for MEMIC and MEMIC Indemnity recognize MEMIC
Group's strong capitalization and historically favorable operating
performance, which are based on the consolidated resuls of its members.
The ratings further acknowledge the group's experienced management team,
conservative operating philosophy, and MEMIC's solid market position and
excellent reputation among Maine policyholders for its high level of
service and profit sharing. The group's positive attributes are derived
from its demonstrated underwriting principles, conservative investment
policy, aggressive claims management practices and firm commitment to
loss control and in-depth safety education and training services.
Notwithstanding, MEMIC, MEMIC Indemnity and MEMIC Casualty's ratings and
outlook could come under pressure should soft market conditions and a
lack of underwriting discipline result in the group's underwriting and
overall profitability underperforming its peers for a sustained period
or should there be a material decline in the group's 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. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
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