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AM Best Revises Outlooks to Negative for SPJST
[June 26, 2019]

AM Best Revises Outlooks to Negative for SPJST


AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bb" of SPJST (Temple,TX).

These Credit Ratings (ratings) reflect SPJST's balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, limited business profile and weak enterprise risk management (ERM).

The revision of the Long-Term ICR outlook to negative reflects the challenges for the SPJST to re-establish positive trends in earnings, as well as both absolute and risk-adjusted capitalization. These rating actions also reflect the significant recent decline in SPJST's Best's Capital Adequacy Ratio (BCAR) from the strong level to adequate, driven largely by statutory net operating losses over the past two years. Additionally, SPJST's ratings reflect the Society's relatively narrow business profile, an ERM framework that is still in the early stages of development and mixed statutory operating results in recent years.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details f the office responsible for issuing each of the individual ratings referenced in this release, please see AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.



AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.



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