News

Mid Continent Insurance Company was downgraded from A- (Excellent) to a B++ (Good) rating by A. M. Best on February 27th , 2009. Best considers a B++ rating to reflect a secure financial strength. According to the Best manual ,the B++ rating is “Assigned to companies that have, in our opinion a good ability to meet their ongoing insurance obligations”
 
In a press release on Monday, John Wendell, President of Mid-Continent Insurance stated the following:

“These rating actions are the result of significant loss reserve strengthening that occurred in 2007 and 2008, which was the main contributor to underwriting losses in each of the past two years. In response, MCI management has taken corrective actions regarding claims handling, reserving procedures, and underwriting initiatives, to improve the loss reserving position and underwriting profitability.

A.M. Best recognized MCI’s moderate underwriting leverage measures, adequate risk-adjusted capitalization, and well established market presence with long-term agency relationships as positive factors.

In our 30-year history, MCI has experienced very few poor underwriting performance years. We are confident that our corrective measures will return the company to profitability. We truly appreciate your business.”

Mid Continent was not the first insurance company to be downgraded by Best this year. They certainly will not be the last. The continuing financial crisis has the potential to adversely affect the balance sheets of many insurance companies.
 
It is the intention of the Tuscano Agency at this time to continue to offer new business and renewal quotes with Mid Continent as the carrier. Our decision to continue to offer coverage through Mid Continent Insurance company needs to be independent of your analysis of your agency’s needs and the needs of your individual policyholders. Additional information on this subject will be posted on this web site as it becomes available.