AM Best improves credit ratings for Encova Mutual Insurance Group members

ALDUICK, NJ-(BUSINESS WIRE)–AM Best raised the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to ‘a’ (Excellent) from ‘a-‘ (Excellent) for members of Encova Mutual Insurance Group (Encova). The outlook for these credit ratings (ratings) has been revised from positive to stable. Simultaneously, AM Best affirmed Encova Life Insurance Company (Encova Life) (Columbus, OH) with an FSR of A- (Excellent) and a Long-Term ICR of ‘a-‘ (Excellent). The outlook for these ratings is stable. (See below for a detailed list of companies and ratings).

The ratings reflect the strength of Encova’s balance sheet, which AM Best rates as the strongest, as well as its adequate operating results, neutral business profile and appropriate enterprise risk management (ERM).

The ratings upgrade reflects Encova’s sustained improvement in underwriting and operating results in recent years, following massive underwriting losses in 2017. Over the past four years, Encova has reported favorable net earnings and policyholder surplus returns with disciplined underwriting practices and conservative investment strategy.

Encova’s ratings are supported by the group’s strongest level risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), as well as the overall strength of its balance sheet, reflecting management’s commitment to profitable surplus growth. Solid investment income continues to drive the company’s operating results as underwriting results continue to improve and return to more favorable historical norms. Encova is a multi-state, multi-order, and mostly trade-line writer with some geographic concentration, especially in his home state of Ohio and the neighboring states of Pennsylvania and West Virginia. The company’s product mix is ​​well diversified, with workers’ compensation being its largest line of business.

Encova Life’s ratings reflect its balance sheet, which AM Best rates as very strong, as well as its adequate operating results, limited business profile and appropriate ERM.

FSR upgraded to A (Excellent) from A- (Excellent) and Long-Term ICR to ‘a’ (Excellent) from ‘a-‘ (Excellent) with outlook revised to stable from positive for the following Encova Mutual Insurance Group members :

  • AlleghenyPoint Insurance Company

  • BrickStreet Mutual Insurance Company

  • Consumers Insurance USA, Inc.

  • American insurance company in Iowa

  • Mutual Insurance Company of Iowa

  • MICO Insurance Company

  • Motorists’ Commercial Mutual Insurance Company

  • Motorists Mutual Insurance Company

  • NorthStone Insurance Company

  • Phenix Mutual Fire Insurance Company

  • PinnaclePoint Insurance Company

  • SummitPoint Insurance Company

  • Wilson Mutual Insurance Company

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of Credit Score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

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 over 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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