April 15, 2022
WARWICK, RI (April 11, 2022) – Providence Mutual Fire Insurance Company announces the release of their financial rating by Kroll Bond Rating Agency (KBRA). Providence Mutual received an A- insurance financial strength rating (IFSR). The Outlook for the rating is Stable.
“We provided KBRA full transparency into our financials, investments, operations, products, market environment, and strategy and feel this outcome is reflective of our superior financial strength, our focus on our policyholders as a mutual company and our commitment to our loyal independent agent partners” said Michele Streton, CEO and President of Providence Mutual.
KBRA reports that Providence Mutual’s rating reflects the company’s strong risk-adjusted capitalization, driven by low underwriting leverage, consistent investment income, and a strong catastrophe reinsurance program. In addition, the company benefits from long-standing agency relationships and a management team with deep local market knowledge. PMFIC’s surplus increased $11.1 million, or 11.1%, to $111.1 million at year-end 2021 and has grown 19.9% since 2016.
The company received a positive rating for its strong commitment to Mutuality and its members, local market knowledge, and long-term customer relationships. KBRA reports that Providence Mutual’s management continues to prioritize the long-term financial strength of the enterprise, with catastrophe reinsurance covering close to a 250-year event. Including reinsurance and surplus, PMFIC could withstand an event in excess of a 500-year return period.
Kroll Bond Rating Agency, LLC (KBRA) is a global full-service credit rating agency registered with the U.S. Securities and Exchange Commission as a NRSRO (Nationally Recognized Statistical Rating Organizations) and is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. KBRA’s stated mission is to set a standard of excellence and integrity. Established in 2010, KBRA remains dedicated to the restoration of trust in credit ratings by creating new standards for assessing risk and by offering timely and transparent ratings. KBRA has over 400 employees worldwide and has issued over 56K ratings, covering firms with a total of $3 trillion and rates many insurance companies.
About Providence Mutual:
Providence Mutual is a mutual property and casualty insurance company providing auto, home, and business owners coverage to individuals and businesses. Providence Mutual writes in Rhode Island, Massachusetts, Connecticut, New Hampshire, Maine, New York, and New Jersey through select independent agents. Chartered in 1800, Providence Mutual is the oldest mutual insurance company in New England and the fifth oldest in the United States. Providence Mutual understands the value of each policyholder and places an emphasis on personalized claims, underwriting, and customer service.