AM Best Upgrades Genesee Patrons Cooperative Insurance Company Issuer Credit Rating

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OLDWICK, NJ–(BUSINESS WIRE)–AM Best upgraded the long-term issuer rating (long-term ICR) from “bbb” (good) to “bbb” (good) and affirmed the financial strength rating (FSR) of B++ (good) of Genesee Patrons Cooperative Insurance Company (Genesee) (Batavia, NY). The outlook for the long-term ICR has been revised from positive to stable, while the outlook for the FSR is stable.

The credit ratings (ratings) reflect Genesee’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.

The long-term ICR upgrade reflects the continued improvement in Genesee’s balance sheet strength, reflecting the highest level of risk-adjusted capitalization, as measured by the capital adequacy ratio (BCAR) of Best, and the organic growth of the surplus in eight of the previous 10 years. , mainly driven by constant operating profitability. In addition, the company’s balance sheet strength reflects overall liquidity metrics which are bolstered by positive underwriting and operating cash flow, and its stable loss provisioning trends, as the company has generally reported a favorable development during most calendar years and accidents. However, the company’s high equity position in the investment portfolio partially offsets these positive factors, leaving a surplus sensitive to equity market volatility.

The company’s profitable operating results are primarily due to strong and consistent underwriting results in each of the past five years. Additionally, Genesee has limited financial flexibility and scale of operations. The company’s business profile is limited due to its product offering as a single-state property insurer and its geographic focus in New York.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Rating Activity webpage. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Preliminary Credit Scores, and AM Best’s press releases, please see Guide to the Proper Use of Best Scores and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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