A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” of Caring Communities, a Reciprocal Risk Retention Group, and Caring Communities Insurance Company.
The ratings reflect the duo’s excellent risk adjusted capitalisation, good geographic spread of risk and consistently profitable operating results.
Partially offsetting the positive rating factors is the firms’ reinsurance programme that historically results in a moderately high reserve leverage statistic associated with long-tail casualty lines of business.
Ratings factors that could lead to an upgrade include, a long-term consistently strong operating performance, maintaining strong risk adjusted capital levels, and executing its business plan.