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A.M. Best has revised its outlook to negative from stable for Country-Wide Insurance Company, a family-owned auto insurance company based in New York, N.Y.
A.M. Best also affirmed Country-Wide's Financial Strength Rating of C+ (marginal) and its Long-Term Issuer Credit Rating of b-, ratings the company has held for the past five years, according to A.M. Best's credit report on the company.
The revised outlooks are due to Country-Wide's continued decline in risk-adjusted capitalization as a result of its reserve strengthening efforts, according to a release issued by A.M. Best regarding the change. Although Country-Wide has increased all accident year reserves in an effort to curb continuing negative reserve development trends, this has driven its recent drop in surplus, the release added.
Country-Wide is a property and casualty insurance company licensed in New York. The company's major lines of business are low limits, automobile liability and automobile physical damage for private passenger and commercial vehicles in New York City, primarily in Brooklyn and Queens. The company's business is generated through brokers within the five boroughs of New York City and Long Island.