Middlesex Mutual Assurance Assigned 'AA' pi Rating
26 June 1998
Middlesex Mutual Assurance Assigned 'AA' pi Rating by Standard & Poor'sNEW YORK, June 25 -- Standard & Poor's today assigned its double-'A' pi insurer financial strength rating to Middlesex Mutual Assurance Company. The company is licensed in Vermont, Maine, Iowa, and Connecticut. Middlesex Mutual's major line of business is private passenger auto liability, and the company was recently acquired by Country Mutual Insurance Co. The company commenced operations in 1836; and the principal state in which it operates is Connecticut. The following factors were incorporated in the pi rating: -- As a pool participant with Country Mutual Insurance Co., the company is assigned the pool rating of double-'A' pi under Standard & Poor's rating methodology; -- Extremely strong capitalization, as measured by a capital adequacy ratio of over 300%; and -- A liquidity ratio of 156.1%, which is considered good. Factors that limit the company's rating are risk-adjusted return on revenue and weighted average return on revenue, which are considered relatively low for a higher rating. Ratings denoted with a 'pi' subscript are insurer financial strength ratings based on an analysis of published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management nor do they incorporate material nonpublic information, and are therefore based on less comprehensive information than ratings without a pi subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect an insurer's financial security occurs. The pi rating process covers U.S. insurers to which Standard & Poor's previously assigned quantitative ('q') ratings, and may include information beyond that used to derive the previous quantitative-only ratings. Pi ratings are not modified with 'plus' or 'minus' designations, nor are they subject to potential CreditWatch listings, Standard & Poor's said. -- CreditWire