The positive outlook reflects Westminster’s strong capitalization, positive pre-tax operating income and its continued profitable underwriting performance, which is attributable to management’s underwriting expertise within its growing commercial lines book of business. Westminster’s favorable capital position is derived from its demutualization in 2005 and the capital contribution from its owner,
Partially offsetting these positive rating factors are Westminster’s geographic concentration and slightly elevated expense ratio. Property risks are geographically concentrated in
Continued positive rating action is contingent upon the company’s ability to sustain favorable operating trends, positive underwriting results and favorable loss-reserve development while maintaining strong risk-adjusted capitalization and adequate leverage measures as they continue to grow. Negative rating actions may occur if the operating and underwriting results deteriorate, or if risk-adjusted capitalization declines significantly during the growth.
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.
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