North Country Insurance Co. received a ratings upgrade from A.M. Best in part due to its long-standing local market presence and its improved capital position.

The ratings services upgraded the Watertown, N.Y.-based firm’s financial strength rating to “B++” (Good) from “B+” (Good) and its issuer credit rating to “bbb” from “bbb-” with a “stable” outlook on both ratings.

With roots dating to 1877, North Country offers products including homeowners, farmowners, inland marine and landlords coverage, according to the property-casualty firm’s website.

A.M. Best said the ratings and outlook also reflect North Country’s improved underwriting leverage and favorable operating performance. The company’s improved capital position has been derived from surplus advances in each of the past five years, which are attributable to management’s emphasis on improved operating margins and strengthened balance sheet, according to the ratings service.

Over the most recent five-year period, pre-tax earnings have been driven primarily by profitable underwriting results due to management’s re-underwriting efforts in prior years and strict adherence to underwriting and pricing discipline in recent years, A.M. Best noted. North Country’s conservative investment portfolio has also generated consistent net investment income.

Partially offsetting the positive ratings attributes, the ratings service said, are North Country’s business concentration and property predominant exposure in New York. As a result, North Country’s operating performance remains susceptible to weather-related events as well as changes in regulatory and competitive market conditions. Also, the company maintains an expense disadvantage, driven primarily by its elevated commission and loss adjustment expenses, according to A.M. Best.

The ratings service added that despite this, North Country’s underlying book of business has outperformed industry averages, as reflected by its extremely favorable five-year average pure loss ratio.