A.M. Best Upgrades Issuer Credit Rating of Central Co-Operative Insurance Company.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating of B++ (Good) of Central Co-Operative Insurance Company (Central Co-Op) (Baldwinsville, NY). The outlook for both ratings is stable.

The upgrading of the ICR of Central Co-Op reflects its trend of positive operating performance, favorable risk-adjusted capitalization and long-standing local market presence in its operating territory. Central Co-Op's capital position is the outcome of several years of positive underwriting results derived from adhering to tightened underwriting guidelines during a period of competitive market conditions, coupled with a portfolio of invested assets that generated a steady stream of investment income. As a result of management's successful implementation of its strategies, including those involving changing market conditions, significant surplus growth has been achieved.

These rating factors are partially offset by Central Co-Op's geographic concentration of risk as a property writer in north central New York, making it susceptible to frequent and severe weather-related events and competitive market conditions.

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The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.

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.