At a glance
- AM Best concurrently affirmed the A and "a" ratings of Tuscarora Wayne Insurance Company and Keystone National Insurance Company, also with a stable outlook; all four make up Mutual Capital Insurance Group.
- AM Best said it expects the business profiles of Illinois Casualty and Lebanon Valley to be enhanced as pooled members.
- For advisors who place business with the group, the Illinois carriers now present the same A financial strength rating as their Pennsylvania affiliates.
AM Best upgraded Illinois Casualty Company and Lebanon Valley Insurance Company to A (Excellent) from A- on Nov. 6, and raised their long-term issuer credit ratings to "a" from "a-". Both outlooks were revised to stable from positive. AM Best concurrently affirmed the A and "a" ratings of Tuscarora Wayne Insurance Company and Keystone National Insurance Company, also with a stable outlook; all four make up Mutual Capital Insurance Group.
The upgrades follow regulatory approval of an intercompany pooling agreement among Tuscarora Wayne, Lebanon Valley and Illinois Casualty effective July 1, 2026. AM Best said it expects the business profiles of Illinois Casualty and Lebanon Valley to be enhanced as pooled members.
For advisors who place business with the group, the Illinois carriers now present the same A financial strength rating as their Pennsylvania affiliates.
AM Best assesses the group's balance sheet strength as very strong, supported by the strongest level of risk-adjusted capitalization on its BCAR measure, solid liquidity and a conservative investment portfolio. Those strengths are partly offset by inconsistent loss reserve development over the past several years. The pool's five-year average combined ratio modestly outperforms the commercial casualty composite and has reported pre-tax operating income in each of the past 10 years. The agency described the business profile as neutral and enterprise risk management as appropriate.
Reported by the Insurance regulation desk from AM Best News. Published . Corrections