OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Financial Strength Rating to C++ (Marginal) from C+ (Marginal) and the Long-Term Issuer Credit Rating to “b+” from “b-” of Country-Wide Insurance Company (Country-Wide) (New York, NY). The outlook of the Credit Ratings (ratings) is stable.

The ratings reflect Country-Wide’s balance sheet strength, which AM Best categorizes as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.

The rating upgrades are the result of favorable trends in Country-Wide’s balance sheet strength. This is due to continued improvements in policyholder surplus levels, and risk-adjusted capitalization. Country-Wide’s overall risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has increased to the strong level from the weak level. Country-Wide’s focus on better, more profitable business, several claims and underwriting initiatives, as well as aggressive rate actions has resulted in lower premiums, which when coupled with increasing capital, has led to the improved level of risk-adjusted capitalization. However, these positive factors are offset partially by historically unfavorable loss reserve developments despite improvements in recent years and high underwriting leverage. Although reinsurance dependence is high, the company has reduced its quota share treaty continually. Additionally, Country-Wide has limited scale of operations. The company’s business profile is limited due to the product offerings as a single-state auto insurer and geographic concentration 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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Josie Novak

Financial Analyst

+1 908 439 2200, ext. 5242

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Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

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Joseph Burtone


+1 908 439 2200, ext. 5125

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Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

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