July 15, 2025 — AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) for the members of N&D Union Mutual Insurance Group (N&D Union). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.)
The ratings reflect N&D Union’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings reflect the consolidation of the members of Norfolk & Dedham Group Pool (Norfolk & Dedham) and the members of Union Mutual of Vermont Companies (Union Mutual) following the groups entering into an affiliation agreement on Nov. 5, 2024, following regulatory approval, as well as adding Union Mutual Fire Insurance Company to an existing pooling agreement between the members of Norfolk & Dedham effective Jan. 1, 2025. New England Guaranty Insurance Company and Community Mutual Insurance Company continue to participate in 100% quota share reinsurance agreements with Union Mutual Fire Insurance Company and receive reinsured ratings.
The new group (N&D Union) consisting of the members of Norfolk & Dedham and Union Mutual is based on explicit support including the pooling agreement and the implementation of a catastrophe reinsurance program effective July 1, 2025, for all members. Implicit support includes the integration of various functions including Finance, Actuarial and IT Security, as well as the combined branding and communications of both Norfolk & Dedham and Union Mutual.
The Norfolk & Dedham companies continue to be headquartered in Dedham, MA, while the Union Mutual companies continue to be headquartered in Montpelier, VT. Joel Murray is the President & Chief Executive Officer of the Norfolk & Dedham companies and the Chair of the integrated Board of N&D Union. Lisa Keysar is the President & Chief Executive Officer of the Union Mutual companies and a Union Board member.
N&D Union’s very strong balance sheet is based on the group’s strongest risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). Balance sheet strength is further supported by a strong liquidity position, modest underwriting leverage and a conservative investment risk profile. Substantial capital protection is provided through a comprehensive reinsurance program.
N&D Union’s operating performance of adequate is based on solid underwriting results and operating performance over the most recent five-year period, as demonstrated by its five-year average combined and operating ratios, which both compare favorably to the industry composite. The five-year average combined ratio is driven by a below average loss and loss adjustment expense ratio, which is partially offset by an above average underwriting expense ratio, largely related to higher commission costs typical of New England writers.
N&D Union’s business profile of neutral is based on its well-established market presence in its operating territories, predominantly Massachusetts, with extensive knowledge of local, regulatory and legislative insurance issues. Personal and commercial line products are also written in New York, New Jersey, Vermont, New Hampshire, Maine, Rhode Island and Connecticut. Geographic spread has been enhanced to a broader area in the Northeast due to the recent affiliation. Products are distributed through independent agents that are regularly monitored and evaluated for business development, mix and profitability.
N&D Union has developed an appropriate ERM program that supports its risk profile. The group’s Chief Executive Officers act as the chief risk officers in charge of overseeing ERM. The group uses sophisticated risk impact management and economic capital models to identify and assess the impact of risks.
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following members of N&D Union Mutual Insurance Group:
- Norfolk & Dedham Mutual Fire Insurance Company
- Dorchester Mutual Insurance Company
- Fitchburg Mutual Insurance Company
The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the newly added members of N&D Union Mutual Insurance Group:
- Union Mutual Fire Insurance Company
- New England Guaranty Insurance Company, Inc.
- Community Mutual Insurance Company
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 Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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