A.M. Best Affirms Ratings of Mercer Insurance Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and the issuer credit ratings of "a" of Mercer Insurance Group (Mercer) (Pennington, NJ). The ratings apply to the following four inter-company reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. pool members: Mercer Insurance Company (Lock Haven Lock Haven, industrial city (1990 pop. 9,230), seat of Clinton co., N central Pa., on the West Branch of the Susquehanna River at the junction of Bald Eagle Creek, in an agricultural area; settled 1769, inc. as a city 1870. A lumber center in the 19th cent. , PA), Mercer Insurance Company of New Jersey, Inc. (Pennington, NJ), Franklin Insurance Company (Lock Haven, PA) and Financial Pacific Insurance Company (Rocklin, CA). The outlook for all ratings is stable. The ratings reflect Mercer's excellent capitalization, solid operating performance and conservative management philosophy. These positive rating factors are partially offset by Mercer's noncompetitive expense structure, historical earnings volatility and the risks associated with the run-off of its California building contractor's book of business (construction defect). With its October 1, 2005 acquisition of Financial Pacific Insurance Company (California) by Mercer's publicly-traded parent, Mercer Insurance Group, Inc. [NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MIGP MIGP Military Intelligence Group MIGP Multicast Interior Gateway Protocol ], Mercer reduced its geographic concentration from nearly 80% in New Jersey (prior to the acquisition) to nearly 30% and roughly 55% in California (post acquisition). For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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