OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and assigned an issuer credit rating of "bbb+" to Consumers Insurance USA, Inc. (Consumers Insurance) (Murfreesboro, TN). The outlook for both ratings is stable.
The ratings reflect Consumer Insurance's solid operating results over the past several years and its strengthened risk-adjusted capital position. The company's recent operating profitability has been driven by management's underwriting discipline, enhanced systems technology and local market knowledge.
Partially offsetting these positive rating factors is Consumer Insurance's elevated expense structure and historical modest unfavorable loss reserve development. In addition, the company's geographic concentration primarily in two states and limited product offerings, make it susceptible to judicial, regulatory and market changes as well as weather related loss activity.
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 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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