Standing the test of time: fifteen property/casualty insurers have managed a remarkable feat--maintaining a Best's Rating of A+ or higher for the past 50 years.

Experts in athletic performance call endurance "strength over time." In financial services, it's a challenge to find an organization that has managed to sustain the highest Best's Ratings for more than a decade--let alone five decades. In the case of the property/casualty industry, 15 have been assigned a Best's Rating of A+ or higher every year between 1954 and 2003.

What sets these companies apart, however, is more than their assigned Best's Ratings. They are dramatically different companies.

Two of them are among the biggest property/casualty insurers--State Farm and Nationwide.

State Farm, the largest personal-lines writer in the United States is sometimes referred to by competitors as the "Big Dog." But it had humble roots, starting 81 years ago in Bloomington, Ill., by a farmer who believed that his colleagues and their families should pay less for insurance because they drove less and had fewer losses than people who lived in cities. Since then, it has grown to 50 states and other lines of business, but its focus remains on middle-class Americans living relatively average lives.

Nationwide and Alfa also started by selling car insurance to farmers.

Others carved out a specific geographic niche to become the preeminent provider in their tightly defined region. Take Lititz Mutual Insurance Co., based in Lititz, Pa.A visit to Lititz is a journey into the heart of Pennsylvania's Amish and Mennonite farmland regions. It underwrites home and auto coverage in towns and counties within a 25-mile radius, areas best known for horse-drawn carts and great antiques.

Others don't define themselves by geography, but rather by the risks they cover. Pharmacists Mutual Insurance Co., based in Algona, Iowa, sticks closely to the business it knows--pharmacists and their stores. Founded 105 years ago by a man who set out to be a pharmacist, only to see his drug store burn down, the company remains true to its roots. Today's board of directors is composed of practicing pharmacists.

Another example of a company that sticks to the niche it helped develop: Church Mutual Insurance Co., based in Merrill, Wis. Started 106 years ago as the Wisconsin Church Mutual Fire Insurance Association, the original board was composed of eight businessmen and two ministers--and the company was not tied to any particular church or denomination.

Only six days after Church Mutual was incorporated, Otsego Mutual Fire Insurance Co. was officially established in Burlington Flats, N.Y The company was started by Silas L. Kelsey after three floods and a fire had wreaked havoc on the town. Although he knew the success rote for fire insurance companies at that time was dismal--27 had gone out of business two years earlier--Kelsey set up shop in back room of his home. Not only did he beat the odds of failure, but he built financially strong company that has stood the test of time.

These insurers all chose a financial strategy that kept them in good stead throughout the decades. At State Auto all employees receive the same percentage of profit sharing based on their branch office's experience and the experience of the overall company. The plan Quincy Mutual Fire Insurance Co. embraced has been to maintain a low leverage in premium writings to surplus.

Amica has staked its financial strategy on building a loyal customer base from which it gets most of new business referrals. Since 1907, Amica has compiled an enviable record paying policyholder dividends for 91 consecutive years.

Three long-established members of the Chubb Group of Insurance Cos. achieved this distinction: Federal Insurance Co., Great Northern Insurance Co. and Vigilant Insurance Co.

Most of the companies recognized in this article have a domestic focus, often a very small geographic area or narrow niche. An exception is AIU, which manages AIG's overseas property/casualty operations.

The sole reinsurer to qualify is General Reinsurance Corp. Originally incorporated in 1921 in New York, General Re, the third-largest reinsurer in the world, was acquired by Berkshire Hathaway Corp. in 1998.

How This Study Was Conducted

This study involved searching all the property/casualty companies included in A.M. Best publication that have earned an A+ or A++ rating consistently during the past 50 years. This search yielded a total of 15 property/casualty companies, out of more than 3,300 property/casualty insurance companies listed in Best's Insurance Reports. Twelve of the 15 companies maintain an affiliation with one or more property/casualty companies. Their ratings are based on the consolidated performance of the company and its affiliation with one or more insurers, which collectively operate, in A.M. Best's opinion, as one coordinated insurance group.

As noted in the accompanying tables, there are only three unaffiliated companies that have been rated A+ or higher during the past 50 years. In addition to the unaffiliated distinction, five of the companies were also incorporated more than 100 years ago.

A.M. Best maintains the world's largest database of insurance information and has been collecting financial information on property/casualty insurance organizations since 1899.

Property/Casualty Companies With A+ or Higher Ratings Since 1954

Company                      AMB #   P/C Group Affiliation

AIU Insurance Co.            02389   American International Group Inc.
Alfa Mutual Insurance Co.    02005   Alfa Insurance Group
Amica Mutual Insurance
  Co.                        02162   Amica Mutual Group
Church Mutual Insurance
  Co.                        00259   none
Federal Insurance Co.        02084   Chubb Group of Insurance Cos.
General Reinsurance Corp.    02198   Berkshire Hathaway Insurance Group
Great Northern Insurance
  Co.                        02085   Chubb Group of Insurance Cos.
Lititz Mutual Insurance
  Co.                        00558   Lititz Mutual Group
Nationwide Mutual Fire
  Insurance Co.              02357   Nationwide Group
Otsego Mutual Fire
  Insurance Co.              03152   none
Pharmacists Mutual
  Insurance Co.              00320   none
Quincy Mutual Fire
  Insurance Co.              00796   Quincy Mutual Group
State Automobile Mutual
  Insurance Co.              00855   State Auto Insurance Cos.
State Farm Mutual
  Automobile Insurance Co.   02479   State Farm Group
Vigilant Insurance Co.       02086   Chubb Group of Insurance Cos.

Unaffiliated Companies *

Company                             AMB #

Church Mutual Insurance Co.         00259
Otsego Mutual Fire Insurance Co.    03152
Pharmacists Mutual Insurance Co.    00320

Incorporated More Than 100 Years Ago/

                                                 Date of
Company                             AMB #    Incorporation **

Church Mutual Insurance Co.         00259        March 4,1897
Federal Insurance Co.               02084        Feb. 15,1901
Lititz Mutual Insurance Co.         00558      Sept. 17, 1888
Otsego Mutual Fire Insurance Co.    03152      March 10, 1897
Quincy Mutual Fire Insurance Co.    00796     March 222, 1851

Ratings as of Dec. 5, 2003

* Unaffiliated Companies: Unaffiliated companies have been rated on a stand alone basis in each of the past 50 years. However, an unaffiliated company may have participated in a merger or acquisition during its history.

** Date of Incorporation: This date represents the company date of incorporation and does not necessarily represent the date that business commenced.

Time Frame of the Study: The 1954 edition of Best's Insurance Reports, Property/Casualty served as the starting point of this 50-year study.

Source: AM. Best data. A combination of computer databases and the annual publications of Best's Insurance Reports were the data sources of this study.