Harford Mutual Insurance Rated BBBpi by S&P

Business Wire, Nov 5, 1998

NEW YORK--(BUSINESS WIRE)--Nov. 5, 1998--Standard & Poor's today assigned its triple-'Bpi' (Good) insurer financial strength rating to Harford Mutual Insurance Co.

Harford Mutual Insurance is licensed in eight states, and commenced operations in 1842. The company is a multiline carrier, writing mostly commercial property casualty business in the mid-Atlantic states. The company participates in an inter affiliate pool with its wholly owned subsidiary, Firstline National Insurance Co. Harford meets Standard & Poor's rating criteria for pool members and is therefore assigned the triple-'Bpi' rating of qualifying members of the Harford Pool.

The following factors were incorporated in the triple-'Bpi' rating of qualifying pool members. -- With a Standard & Poor's capital adequacy ratio of 268.1%,

capitalization is extremely strong. -- Liquidity is satisfactory, as indicated by Standard & Poor's

liquidity ratio of 129.9%. -- Geographic and product line concentration is viewed as an issue. -- Profitability has been volatile over the past six years, as

measured by risk-adjusted return revenue of -3.7%.

'Pi' ratings, denoted with a pi subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a pi subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a pi subscript are not subject to potential CreditWatch listings. Ratings with a pi subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said. --CreditWire

Copyright 1998, Standard & Poor's Rating Services