Oldwick, NJ -(BusinessWire)- A.M. Best Co. has assigned the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” to BrickStreet Mutual Insurance Company’s (BSMIC) newly formed subsidiaries; SummitPoint Insurance Company (SummitPoint) and PinnaclePoint Insurance Company (PinnaclePoint). A.M. Best also has affirmed the FSR of A- (Excellent) and an ICR of “a-” of BSMIC and its subsidiary, NorthStone Insurance Company (NorthStone). BSMIC and its subsidiaries are collectively referred to as BrickStreet Mutual Insurance Group (BrickStreet). The companies are all headquartered in Charleston, WV. The outlook for all ratings is stable.
The rating actions reflect BrickStreet’s solid 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 SummitPoint and PinnaclePoint recognize their participation in an intercompany pooling agreement with BSMIC and NorthStone and the financial support and flexibility of BSMIC. These companies were 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.