Ratings news
–14 March 2008
AM Best has downgraded the financial strength rating (FSR) to 'B++' (Good) from 'A-' (Excellent) and has assigned an issuer credit rating (ICR) of "bbb+" to Michigan-based Wolverine Mutual Insurance Company. It has also revised the outlook for the FSR to stable from negative.
The outlook assigned to the ICR is negative, "driven by Wolverine's suppressed earnings and continued sub-industry performance," said Best. "The ratings reflect Wolverine's favorable gross underwriting performance, its well-established market presence in Michigan and Indiana and its improving investment performance," the bulletin continued. However Best noted that "the company's marginal capital position, driven by above average leverage ratios and below average net operating performance in comparison to its industry composite" is an offsetting factor. Wolverine writes primarily property coverage and is exposed to wind and hail risks.
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