A.M. Best Revises Outlook to Positive for Westminster American Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B+ (Good) and issuer credit rating of "bbb-" of Westminster American Insurance Company (Westminster) (Westminster, MD). The ratings reflect Westminster's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. risk-adjusted capitalization and improved operating performance. Westminster's capital position is derived from the demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. of the former Mutual Fire Insurance Company of Carroll County Carroll County is the name of thirteen counties in the United States of America. All except Carroll County, Tennessee, are named for Charles Carroll of Carrollton, a signer of the United States Declaration of Independence from Maryland:
The new management team, which has been overseeing Westminster's operations since 2005, continues to implement corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or , which have resulted in improved operating performance and surplus growth. Additionally, the management team is focused on growing its commercial book of business and, as such, continues to enhance the company's product offerings and technology capabilities. The positive outlook reflects A.M. Best's expectation that Westminster's improved operating results and level of capitalization will continue to trend favorably as management implements product and geographical expansion. Partially offsetting these positive rating factors is Westminster's geographic concentration of property risks in Maryland and Washington D.C., elevated expense structure and historically poor underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results. 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 global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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