Mutual Assurance Society of Virginia Surveillance Report

Rating Summary

The rating reflects MAS’ very strong risk-adjusted capitalization, supported by exceptionally low premium leverage, conservative reserve leverage and strong liquidity, which provide significant capacity to absorb catastrophe losses, investment volatility and underwriting variability. The Society’s comprehensive catastrophe reinsurance program and predominantly inland exposure further support its ability to withstand extreme tail events. In addition, management’s emphasis on long-term financial strength, conservative underwriting, disciplined pricing and high policyholder retention has contributed to favorable risk selection and stability of the franchise. MAS also benefits from the operating flexibility afforded by its status as a Chapter 25 Mutual Assessment Property and Casualty Insurance Company in the Commonwealth of Virginia. Finally, despite maintaining a more equity-oriented investment portfolio than most peers, management’s strong long-term investment performance…