Market Overview

A.M. Best Upgrades Credit Ratings of Bunker Hill Insurance Group Members

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A.M. Best has upgraded the Financial Strength Rating (FSR) to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) to "a-" from "bbb" for the members of Bunker Hill
Insurance Group
(Bunker Hill). The outlook of the Long-Term ICR has
been revised to stable from positive, while the outlook for the FSR
remains stable. Concurrently, A.M. Best has affirmed the Financial
Strength Rating (FSR) of A- (Excellent) and Long-Term ICRs of "a-" of
the members of Plymouth Rock Assurance Group (Plymouth Rock). The
outlook of these Credit Ratings (ratings) remains stable. The companies
are operating subsidiaries of their parent holding company, The
Plymouth Rock Company Incorporated
. All companies are headquartered
in Boston, MA.

The ratings of Bunker Hill reflect its balance sheet strength, which
A.M. Best categorizes as very strong, as well as strong operating
performance, limited business profile and appropriate enterprise risk
management. The rating upgrades of the members of Bunker Hill are based
on the companies' improved risk-adjusted capitalization, predominantly a
result of enhancements to the catastrophe reinsurance program and solid
growth in policyholders' surplus. Although there has been some modest
weather-driven volatility, the core book of business has performed well,
primarily due to underwriting discipline and rate actions.

The ratings of Plymouth Rock reflect its balance sheet strength, which
A.M. Best categorizes as very strong, adequate operating performance,
limited business profile and appropriate enterprise risk management.

Risk-adjusted capitalization reflects the group's favorable loss reserve
development trends and solid growth in surplus in recent years,
partially offset by elevated common stock leverage. The group's
performance reflects management's extensive experience and expertise in
the Massachusetts, Connecticut and New Hampshire automobile insurance
markets. The group utilizes several innovative distribution methods to
produce business and maintain market share in the competitive and
challenging Massachusetts insurance market. The group recently entered
the New York private passenger automobile market through Plymouth
Rock Assurance Corporation
's acquisition of 21st Century National
Insurance Company
, which remains separately rated by A.M. Best with
its FSR of A- (Excellent) and Long-Term ICR of "a-" currently under
review with developing implications.

Conversely, as predominantly single state writers, Plymouth Rock and
Bunker Hill remain susceptible to severe localized weather and to
economic, judicial and regulatory issues.

The FSR has been upgraded to A- (Excellent) from B++ (Good) and the
Long-Term ICRs have been upgraded to "a-" from "bbb", with the outlook
of the Long-Term ICRs revised to stable from positive and the outlook
for the FSR maintained at stable, for the following members of the
Bunker Hill Insurance Group
:

  • Bunker Hill Insurance Company
  • Bunker Hill Insurance Casualty Company
  • Bunker Hill Preferred Insurance Company
  • Bunker Hill Property Insurance Company
  • Bunker Hill Security Insurance Company

The FSR of A- (Excellent) and Long-Term ICRs of "a-" have been affirmed,
all with stable outlooks, for the following members of the Plymouth
Rock Assurance Group
:

  • Plymouth Rock Assurance Corporation
  • Mt. Washington Assurance Corporation
  • Pilgrim Insurance Company

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 a global rating agency and information provider with a
unique focus on the insurance industry. Visit
www.ambest.com
for more information
.

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

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