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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Upgrades Credit Ratings of Nazareth Mutual Insurance Company

August 19, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Aug 19, 2021--

AM Best has upgraded the Financial Strength Rating (FSR) to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” (Good) from “bbb-” (Good) of Nazareth Mutual Insurance Company (Nazareth) (Nazareth, PA). The outlook of the Long-Term ICR has been revised to positive from stable while the outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Nazareth’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The upgrades of the FSR and Long-Term ICR reflect Nazareth’s improved ERM assessment, driven by a developed risk management framework and expanded risk management capabilities, which are appropriately commensurate with the risk profile of the business. The potential for unfavorable impact on capital strength due to tail-risk exposure events has been mitigated significantly in recent years, as measured by Best’s Capital Adequacy Ratio (BCAR) at the 1-in-500-year severity level.

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The positive outlook on the Long-Term ICR reflects Nazareth’s strengthened balance sheet, supported by key metrics of financial strength over the past five years. Improved operating performance has powered robust policyholders’ surplus growth over the past few years, which in turn has moved important quantitative metrics such as underwriting leverage, liquidity measures and cash flows in a favorable direction.

The limited business profile assessment is driven largely by Nazareth’s geographic concentration in Pennsylvania, which exposes results to frequent and severe weather-related events, as well as potential judicial, economic or regulatory challenges.

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This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 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/20210819005711/en/

CONTACT: Christopher Jackson

Financial Analyst

+1 908 439 2200, ext. 5721

christopher.jackson@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comKenneth Tappen

Senior Financial Analyst

+1 908 439 2200, ext. 5248

kenneth.tappen@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 08/19/2021 02:54 PM/DISC: 08/19/2021 02:54 PM

http://www.businesswire.com/news/home/20210819005711/en