OLDWICK, NJ–(BUSINESS WIRE)–am best reviewed Everett Cash Mutual Insurance Company’s Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) with negative impact ) and 1St Choice Advantage Insurance Company, Inc., which are members of the ECM Insurance Group (ECM). Concurrently, AM Best reviewed the FSR of B++ (good) and long-term ICR of “bbb+” (good) of Ever-Greene Mutual Insurance Company (Ever-Greene), a subsidiary of Everett Cash Mutual, with evolving implications . All companies are based in Everett, PA.
ECM’s credit ratings have been negatively impacted following the recent announcement that Everett Cash Mutual has acquired renewal rights from American Reliable Insurance Company. This transaction also includes a share purchase agreement, subject to regulatory approval, and is expected to close before the end of the first quarter of 2023. This rating action also reflects the significant execution risk associated with ECM’s robust growth initiatives and expanded geographic footprint.
Ever-Greene’s ratings have been reviewed based on Ever-Greene’s strategic importance to the organization’s overall business strategy and management’s plan for incremental net awards at Ever-Greene via a quota reinsurance arrangement with Everett Cash. Implications are mutual.
Ratings will be reviewed pending management implementation of intended action plans and AM Best assessing the full impact of these developments on the overall organization.
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