Noting its favorable level of risk-adjusted capitalization, A.M. Best has assigned a pair of ratings to Vestal, N.Y.-based Broome Co-operative Insurance Co.

The ratings service assigned a financial strength rating of “B++” (Good) and issuer credit rating of “bbb+” to Broome Co-op. The outlook assigned to both ratings is stable.

Broome Co-op is a property-casualty company that works with more than100 independent agents and brokers, according to its website.

A.M. Best noted the company’s capitalization, which it said is attributable to its low underwriting leverage position and conservative investment portfolio. The ratings also reflect Broome Co-op’s consistently strong operating income, A.M. Best noted, favorable underwriting performance driven by lower than average losses from its seasoned book of business, and its long-standing local market presence as a property lines writer in New York.

Partially offsetting these positive rating factors are the company’s elevated expense position and geographic concentration of risk, the ratings service said.

By operating exclusively in New York, its earnings are susceptible to weather-related events and competitive market conditions, A.M. Best said, but also note that a comprehensive reinsurance program is maintained to mitigate the exposure to high severity events.

Broome Co-op’s elevated expense position is mainly driven by commission costs, technology enhancements, and more recently, increased state assessments, the ratings service said.