A.M. Best Upgrades Credit Ratings of Central Co-operative Insurance Company

A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to "a" from "a-" of Central Co-operative Insurance Company (Central Co-operative) (Baldwinsville, NY). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Central Co-operative's balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The rating actions reflect the company's consistent and strong underwriting and operating performance, which experience a relatively low-to-moderate degree of volatility and continue to outperform its peer group. Despite being a single-state writer in New York, Central Co-operative has managed to mitigate weather-related losses and consistently post a below break-even combined ratio year over year. The results benefit from a comprehensive reinsurance program with low retentions, thus shielding surplus and mitigating tail risk. Through 2017, the combined ratio was the lowest in a 10-year period (75%), demonstrating continued high-quality underwriting and extensive inspection processes. Additionally, Central Co-operative's balance sheet strength continues to improve, as operating earnings enhance the surplus position and risk-adjusted capitalization. The company's favorable risk-adjusted capitaliation emulates its profitable operating performance, low underwriting leverage, favorable loss reserve trends and fairly conservative investment portfolio. These positive rating attributes are offset partially by the company's limited financial flexibility and scale.

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.