AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Juniata Mutual Insurance Company (JMIC) (McAlisterville, PA).
The Credit Ratings (ratings) reflect JMIC’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 (ERM).
The negative outlooks reflect AM Best’s expectation of continued pressure on JMIC’s operating performance assessment over the intermediate term, driven in part by an elevated underwriting expense ratio. While the company continues to execute a viable turnaround strategy, it faces persistent competitive market conditions, creating heightened execution risk.
JMIC’s strong balance sheet strength assessment is supported by very strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), and positive five-year growth in policyholders’ surplus, partially offset by limited financial flexibility and scale of operations. JMIC’s limited business profile assessment is driven largely by its geographic concentration in Pennsylvania, which exposes results to weather-related events, as well as potential judicial, economic or regulatory challenges. Additionally, JMIC’s ERM capabilities are considered appropriate for its risk profile.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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