A.M. Best Upgrades and Assigns Ratings to A.I.M. Mutual Insurance Companies; Revises Outlook to Stable.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength ratings (FSR) to A (Excellent) from A- (Excellent) and revised the outlook to stable from positive for A.I.M. Mutual Insurance Companies and its members, which consist of Associated Industries of Massachusetts Mutual Insurance Company (A.I.M.) and its wholly owned reinsured subsidiary, Associated Employers Insurance Company (AEIC). An FSR of A (Excellent) has been assigned with a stable outlook to A.I.M.'s other reinsured subsidiary, Massachusetts Employers Insurance Company (MEIC). Concurrently, A.M. Best has assigned issuer credit ratings (ICR) of "a" to A.I.M. Mutual Insurance Companies and its members. The outlook for the ICRs is stable. All companies are domiciled in Burlington, MA.

The ratings reflect the group's excellent capitalization, strong operating performance, conservative reserving practices and the inherent benefits derived from its sponsor, Associated Industries of Massachusetts, Inc. Partially offsetting these positive rating factors is the concentration risk as a regional workers' compensation writer, which potentially exposes the group to adverse developments and changes within the economic, legislative and regulatory environment. Despite this concern, the outlook reflects the group's solid capitalization, improved profitability and commitment to maintaining reserve adequacy.

The positive rating factors are driven by the group's strict underwriting guidelines and the competitive advantages of sponsorship by the largest employer advocate association in Massachusetts. Employer involvement, loss control and claims administration practices have played a role in the group's success over the years. A.I.M. ranks among the top writers of workers' compensation coverage in Massachusetts. Accordingly, the group's niche product focus and local market knowledge have contributed to its strong performance.

For Best's Ratings, 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 industries, including the banking and insurance sectors. For more information, visit www.ambest.com.