Kroll Bond Rating Agency has awarded Mutual Assurance an A+ rating again!
Every year, KBRA reviews the environmental, social, and governance (ESG) protocols of Mutual Assurance and other insurance companies worldwide, focusing on factors that affect the risk of default and/or recovery. These include the company's business model, ownership structure, management profile, strategy and internal policies.
Mutual Assurance has been steadily improving its performance in these areas and has earned its second A+ rating in as many years.
Here are some of the highlights from the report:
The rating reflects MAS’ strong organic surplus growth over the past decade, resulting in very conservative underwriting leverage ratios that are well below the industry average. The surplus position also gives MAS the ability to withstand extreme tail events, including a 1-1,000-year hurricane. Furthermore, MAS maintains a very strong liquidity position, which adequately aligns with its short-tailed property lines. MAS’ local market knowledge, long-standing agency relationships and the use of a perpetual homeowner’ policy, has resulted in customer retention of approximately 95% for the last 10 years.
The management team has made significant progress in further developing its risk register in recent years.
Since March 2020, MAS has seen a 23% reduction in building energy usage. During that period, more than 50% of the company’s employees work from home daily, eliminating an estimated 722,000 pounds of CO2 from reduced commuting miles. Other company initiatives include moving entirely to cloud-based systems, using 100% Energy Star certified computers and monitors, using occupancy sensors throughout the Home Office and installing redundant high efficiency natural gas heating for the home office.
The company maintains a comprehensive cyber security program. MAS has a CISSO leading their IT department. The mutual employs strict MFA for all network access, recently implemented SSO (single sign on), and enabled Geo fencing. MAS utilizes next generation antivirus MTR (with 24/7/365 monitoring) for all endpoint detection and response, air gapped back-ups, end user security training, inbound/outbound internet traffic blocking, end-user device encryption, email filters, and real-time multiple vulnerability management software solutions.
KBRA views MAS’ current catastrophe program and surplus as sufficient to withstand extreme tail events, with protection far greater than most property writers.
Ultimately, a high rating from KBRA impacts the company's ability to secure the most favorable reinsurance terms available, helping to maintain the company's viability and ability to keep costs as low as possible.
Mutual Assurance is proud of the entire team, which has worked diligently to secure an A+. It speaks to our efforts to continually improve for the benefit of our members.
If you would like to read the entire report, click here.
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