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AM Best Upgrades Credit Ratings for Members of Encova Mutual Insurance Group

·3 min read

OLDWICK, N.J., September 15, 2022--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" (Excellent) from "a-" (Excellent) for the members of Encova Mutual Insurance Group (Encova). The outlook of these Credit Ratings (ratings) have been revised to stable from positive. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of "a-" (Excellent) of Encova Life Insurance Company (Encova Life) (Columbus, OH). The outlook of these ratings is stable. (See below for a detailed listing of companies and ratings).

The ratings reflect Encova’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings upgrade reflects Encova’s sustained improvement in underwriting and operating performance in recent years, following outsized underwriting losses in 2017. Over the past four years, Encova has reported favorable net earnings and returns on policyholder surplus with disciplined underwriting practices and a conservative investment strategy.

Encova’s ratings are supported by the group’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as the overall strength of its balance sheet, reflecting management’s commitment to profitable surplus growth. Solid investment income continues to drive the company’s operating performance as underwriting results continue to improve and return to more-favorable historic norms. Encova is a multi-state, multi-line and predominantly commercial lines writer with some geographic concentration, particularly in its home state of Ohio and neighboring states of Pennsylvania and West Virginia. The company’s product mix is well-diversified with workers’ compensation as its largest line of business.

The ratings of Encova Life reflect its balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.

The FSR has been upgraded to A (Excellent) from A- (Excellent) and the Long-Term ICR to "a" (Excellent) from "a-" (Excellent), with the outlooks revised to stable from positive for the following members of Encova Mutual Insurance Group:

  • AlleghenyPoint Insurance Company

  • BrickStreet Mutual Insurance Company

  • Consumers Insurance USA, Inc.

  • Iowa American Insurance Company

  • Iowa Mutual Insurance Company

  • MICO Insurance Company

  • Motorists Commercial Mutual Insurance Company

  • Motorists Mutual Insurance Company

  • NorthStone Insurance Company

  • Phenix Mutual Fire Insurance Company

  • PinnaclePoint Insurance Company

  • SummitPoint Insurance Company

  • Wilson 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Contacts

Joni Cerbone, CPA
Senior Financial Analyst
+1 908 439 2200, ext. 5726
joni.cerbone@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Alan Murray
Associate Director
+1 908 439 2200, ext. 5535
alan.murray@ambest.com

Jeff Mango
Managing Director,
Strategy & Communications
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com