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A.M. Best Upgrades Issuer Credit Rating of Forestry Mutual Insurance Company

June 16, 2014



ENP Newswire - 16 June 2014

Release date- 13062014 - A.M. Best has upgraded the issuer credit rating (ICR) to 'bb+' from 'bb' and affirmed the financial strength rating of B (Good) of Forestry Mutual Insurance Company (FMIC) (Raleigh, NC).

The outlook on both ratings has been revised to positive from stable.

The ICR upgrade reflects the improvement seen in underwriting and operating results in 2013, as well as positive underwriting cash flows for the first time since 2007. FMIC has begun to benefit from geographic diversification since entering markets in neighboring states, as well as the initiatives taken in recent years to restructure FMIC's reinsurance program to reduce net loss ratio volatility. The company has also non-renewed unprofitable accounts and implemented a zero-tolerance policy for failure to comply with safety requirements.

The revised outlook reflects A.M. Best's expectations for positive rating movement should FMIC's results continue to improve. While the company is well positioned at its current rating level, negative rating actions could occur if earnings decline or capitalization levels materially deteriorate.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.

A.M. Best's credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions.

A.M. Best receives compensation for its rating services from the organizations that it rates, unless such ratings are identified with a Public Data modifier ('pd'). Public Data ratings are based on information available in the public domain and indicate the more limited scope of the rating and the fact that the company did not initiate the rating. A.M. Best does not send entities assigned a 'pd' rating an invoice for its rating services and does not assign ratings to securities issued by companies assigned a Best's 'pd' rating. A.M. Best may also receive compensation from rated entities for non-rating related services or products offered by A.M. Best. A.M. Best does not offer consulting or advisory services. For more information regarding A.M. Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the A.M. Best Code of Conduct.

A.M. Best Company and its subsidiaries are not registered as External Credit Assessment Institutions (ECAI) in the European Union (EU). Credit ratings issued by A.M. Best Company and its subsidiaries can not be used for regulatory purposes in the EU as per Directive 2006/48/EC.


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Source: ENP Newswire


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