The ratings reflect WMIC's solid capitalization, favorable balance sheet liquidity, stable loss-reserve development and generally positive operating cash flows. The ratings and outlook recognize WMIC's generally improved operating performance and return to underwrting profitability over the past several years as a result of fewer severe storm losses and management actions to improve earnings.
Partially offsetting these positive rating factors is WMIC's concentration of personal lines business in a single state that exposes it to frequent and severe weather-related events, regulatory changes and potentially adverse judicial actions. This concentration risk was evident in 2010 and 2011 when widespread hail storms and frequent wind events resulted in operating losses and declines in policyholders' surplus and risk-adjusted capitalization. Additionally, an adverse judicial decision resulted in an extra-contractual settlement in 2010 that contributed to underwriting losses.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of
Keywords for this news article include: Insurance Companies,
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
Most Popular Stories
- Rackspace Ends Talks About Possible Acquisition
- Mercedes Rolls Out S550 Plug-in Hybrid
- Plus-Size iPhones Live Up to The Hype
- FedEx Adding 50,000 Holiday Jobs
- Toxic Algae Threatens Florida Fishing, Tourism
- Cool Features on Today's New iOS 8
- Missouri GM Plant Adding 750 jobs
- Family Dollar Spurning Bid From Dollar General
- Kohl's Hiring 67,000 for the Holidays
- Poverty Rate Drops for First Time Since 2006