AM Best Revises Outlooks to Stable for Maine Employers’ Mutual Insurance Company and Its Subsidiaries

MAY 30, 2024 08:48 AM (EDT)

AM Best Revises Outlooks to Stable for Maine Employers' Mutual Insurance Company and Its Subsidiaries

CONTACTS:

FOR IMMEDIATE RELEASE

OLDWICK - MAY 30, 2024 08:48 AM (EDT)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of "a" (Excellent) of Maine Employers' Mutual Insurance Company (Portland, ME) and its wholly owned subsidiaries, MEMIC Indemnity Company and MEMIC Casualty Company (both domiciled in Manchester, NH). All three companies collectively are referred to as MEMIC Group (the group).

The Credit Ratings (ratings) reflect MEMIC Group'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.

The revision of the outlooks to stable from negative reflects the group's demonstrated sustainability in improved operating results that compare more favorably with AM Best's workers' compensation composite. The MEMIC Group implemented several initiatives toward its underwriting strategy, aiming to achieve an underwriting profit across all entities and obtain adequate pricing across the entire book of business. These efforts have resulted in a significant reduction to the group's combined ratio and 2023 marked its most profitable underwriting performance in 10 years. The results have benefited from premium growth and reduction in policyholder dividends in 2022 and 2023. Additionally, MEMIC Group's stronger pre-tax operating income was enhanced by robust investment returns in the past two years.

The group's balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), which benefited from a recent reduction in a common stock leverage. The surplus has been enhanced by positive operating results as well as the issuance of the long-term $30 million surplus note. The group is well-positioned for further premium growth and plans to sustain modest underwriting profitability over the next several years.

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.