TMCnet News
A.M. Best Withdraws Credit Ratings of Cameron National Insurance Company; Affirms Credit Ratings of Cameron Mutual Insurance CompanyA.M. Best has withdrawn the Financial Strength Rating (FSR) of B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb-" of Cameron National Insurance Company (Cameron National). The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has affirmed the FSR of B+ (Good) and the Long-Term ICR of "bbb-" of Cameron Mutual Insurance Company (Cameron Mutual). The outlook of these ratings remains stable. Both companies are domiciled in Cameron, MO. The rating withdrawals reflect the migration of all business to Cameron Mutual from Cameron National and the termination of the quota share agreement between the two organizations, effective Jan. 1, 2018. These actions have resulted in A.M. Best withdrawing the ratings of Cameron National. It is A.M. Best's policy to complete a final rating along with a rating withdrawal. However, a final rating was not able to be completed, as the termination of the quota share contract occurred prior to A.M. Best being notified. The rating affirmations reflect Cameron Mutual's balance sheet, which A.M. Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM). The stable outlooks reflect A.M. Best's expectation of improved operating performance and continued very strong balance sheet strength. Cameron Mutual's balance sheet strength reflects the strongest level of risk-adjusted capitalization, a conservative investment portfolio and historically favorable reserve development. Partially offsetting these positive rating factors is the elevated underwriting leverage compared with the composite. Cameron Mutual' operating performance has been volatile, driven by weather-related losses and rising loss costs in its auto business. However, A.M. Best expects underwriting initiatives and updated product offerings to improve results prospectively. Cameron Mutual maintains a limited business profile with products distributed exclusively through independent agents with a property concentration in the Midwest. Cameron Mutual continues to enhance its ERM program to support the organization's risk profile. Negative rating action could occur if operating results fall materially short of management's projections for improved performance. Positive rating action in the future is contingent upon sustained improvement in underwriting and operating performance. This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180524005749/en/ |
