FEB. 8, 2012 – AM Best downgraded the financial strength rating of The New England Mutual Insurance Company from A+ (Superior) to A (Excellent) and issuer credit rating from “a” to “aa.” The outlook for both ratings, however, is stable. Yesterday’s move follows the decision and regulatory approval of NEMIC to unwind itself from the existing pooling agreement with The Quincy Mutual Group, of Quincy, MA.
“The ratings reflect NEMIC’s adequate risk-adjusted capitalization based on its current underwriting and credit risks and management;s in-depth knowledge of the Massachusetts homeowner’s market. In addition, the ratings recognize the support afforded to NEMIC as being an integral part of the Quincy Mutual Group, despite no longer participating in the pooling arrangement,” reports AM Best.
Offsetting these factors, however, says AM Best, are the competitive market conditions in NEMIC’s leading state, its susceptibility to weather-related losses and the challenges it faces in operating separately from Quincy Mutual Fire Insurance Company.
