A.M. Best Revises Outlooks to Positive for Members of Union Mutual of Vermont Companies
February 12, 2018
OLDWICK, N.J. – A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “A-” of Union Mutual Fire Insurance Company the lead property/casualty company and its wholly owned subsidiary, New England Guaranty Insurance Company, Inc. as well as its mutual affiliate, Community Mutual Insurance Company, which are collectively referred to as Union Mutual of Vermont Companies. Union Mutual Fire and New England Guaranty are domiciled in Montpelier, VT, while Community Mutual is domiciled in Troy, NY.
The ratings reflect Union Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The revised outlooks reflect significant improvement in underwriting results in recent years that have benefited from refinement in pricing models, a more sophisticated policy administration system, stricter underwriting guidelines and effective agency management. Additionally, loss experience has been trending positively, while pretax operating income and corresponding return measures have strengthened materially. Although currently assessed at adequate, A.M. Best expects sustained improvement in Union Mutual’s operating performance.
Union Mutual, founded in 1874, is a property casualty insurance group consisting of Union Mutual Fire Insurance and New England Guaranty Insurance Company Inc., both based in Montpelier, Vermont; Eastern Mutual Insurance Company, based in Greenville, New York; and Community Mutual Insurance Company, based in Troy, New York. The four companies write a total of $180 million in direct premium annually through independent agents throughout New England and New York, and are all rated A-(Excellent) by A.M. Best.