Oldwick, NJ -(BusinessWire)- A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of BrickStreet Mutual Insurance Company (BSMIC). A.M. Best also has assigned an FSR of A- (Excellent) and an ICR of “a-” to BSMIC’s subsidiary, NorthStone Insurance Company (NorthStone). BSMIC and NorthStone are collectively referred to as BrickStreet Mutual Insurance Group (BrickStreet). The outlook for all ratings is stable, and both companies are headquartered in Charleston, WV.
The rating actions reflect BrickStreet’s strong risk-adjusted capitalization, profitable underwriting and operating performance and dominant position in the West Virginia workers’ compensation market. The ratings also recognize the group’s prudent loss reserving standards that have allowed for favorable loss reserve development of prior accident years and the competitive rate flexibility afforded by multiple tiering in a number of states.
The ratings of NorthStone recognize the intercompany pooling agreement and the financial support and flexibility of BSMIC. NorthStone was formed to facilitate a more flexible tiered pricing structure in the states where BSMIC does not have multiple tiers.
Positive rating actions may occur if BrickStreet sustains its strong underwriting and operating performance over the medium term. However, negative rating actions could result if the operating performance and/or risk-adjusted capitalization of the group falls markedly short of A.M. Best’s expectations.