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A.M. Best Revises Issuer Credit Rating Outlook to Positive for Members of Wisconsin Reinsurance Group

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A.M. Best has revised the outlook to positive from stable for the
Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the
Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of
"bbb" of Wisconsin Reinsurance Corporation (WRC) and 1st Auto
& Casualty Insurance Company
(1st Auto), collectively referred
to as Wisconsin Reinsurance Group (WRG) (Madison, Wisconsin). The
outlook of the FSR remains stable.

The Credit Ratings (ratings) reflect WRG's balance sheet strength, which
A.M. Best categorizes as strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management.

The Long-Term ICR outlook revision to positive is based on A.M. Best's
expectation that WRG will maintain its balance sheet strength through
continued adequate operating performance, driven by favorable
underwriting results. WRG has sustained this underwriting performance
trend despite the impact from weather-related events, as it operates as
a reinsurer for mutual insurance companies in the Midwest.

The rating affirmations further reflect the group's strengthened
risk-adjusted capitalization as measured by Best's Capital Adequacy
Ratio (BCAR), comprehensive reinsurance program, high quality investment
portfolio and generally favorable loss reserve development trends. These
positive rating factors are partially offset by the group's exposure to
weather-related events and below-average operating results in its
automobile book of business offered through 1st Auto, whose role is to
provide direct line products to agents affiliated with companies
reinsured by WRC.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Recent
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Understanding
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
Guide
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases
.

A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit
www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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