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AM Best Upgrades Issuer Credit Ratings of Members of Fire Districts Insurance Group

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Long-Term Issuer Credit Ratings
(Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength
Rating of B++ (Good) of the members of Fire Districts Insurance Group
(FDIG). FDIG consists of Fire Districts of New York Mutual Insurance
Company, Inc. and its wholly owned subsidiaries, FDM Preferred Insurance
Company, Inc. and Fire Districts Insurance Company, Inc. (all domiciled
in Pearl River, NY). The outlook of the Credit Ratings (ratings) remains
stable.

The ratings reflect FDIG’s balance sheet strength, which AM Best
categorizes as strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management.

The Long-Term ICRs of FDIG were upgraded based on the group’s
significant improvement in operating earnings and increase in
policyholders’ surplus in the most-recent five-year period, and the
group’s ability in AM Best’s view to sustain this performance over time.
In 2018, better-than-average operating earnings led to a significantly
improved balance sheet. AM Best believes that management’s effective use
of deviated rate plans and improved safety procedures are key components
to the group’s dramatically improved results over the last two years. As
a result, FDIG’s return on equity and revenue measures outperform its
peers on a five-year basis.

The ratings also take into consideration the group’s high level of
reinsurance dependence and its limited business profile, as FDIG’s sole
line of business is providing workers’ compensation coverage to
volunteer firefighters in New York. As a single-state, monoline insurer,
FDIG is subject to regulatory and legislative pressures, as well as to
the high cost of operating in the state. FDIG benefits from its
long-standing, local market presence and expertise in the narrow market
that it has served since its formation in 1978.

This press release relates to Credit Ratings that have been published
on AM 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 AM 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 AM Best press releases, please view
Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases
.

AM 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 © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Edward J. Zonenberg
Senior Financial Analyst
+1
908 439 2200, ext. 5135

[email protected]

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159

[email protected]

Daniel J. Ryan
Senior Director
+1 908 439
2200, ext. 5325

[email protected]

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644

[email protected]

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