A.M. Best Upgrades Outlook to Stable and Affirms Financial Strength Rating of A- (Excellent)

January 29, 2014

A.M. Best Upgrades Outlook to Stable and Affirms Financial Strength Rating of A- (Excellent) for Cumberland Mutual Fire Insurance Company and its subsidiary, Cumberland Insurance Company, Inc.

Bridgeton, New Jersey-Jan. 29, 2014 –A.M. Best Co. upgraded the outlook ratings for Cumberland Mutual Fire Insurance Company (Cumberland Mutual) and its subsidiary, Cumberland Insurance Company, Inc. (CIC), to stable and affirmed the previous financial strength ratings of A- (Excellent) and issuer credit ratings of “a-.” A.M. Best Company (A.M. Best) is the insurance industry’s leading rating organization.

According to A.M. Best, these upgraded outlooks are due to both Companies’ “strong risk-adjusted capitalization and recently improved operating performance” which have resulted in large part from “management’s strategic initiatives.” A.M. Best attributed Cumberland Mutual’s strong capital position to its modest underwriting leverage and favorable loss reserve development while commenting that the excellent capital position of CIC was accompanied by five-year pre-tax returns on revenue and equity which compared favorably to the industry norms.

Updated underwriting tools and systems, a more focused underwriting approach, product enhancements, and territorial diversification, coupled with a year of less severe weather have resulted in improved underwriting results, operating earnings and surplus position in 2013. While working diligently to improve underwriting results and to update technology we are proud to maintain our long-term market presence and long-standing relationships through our independent agency force.

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