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TMCNet:  A.M. Best Revises Issuer Credit Rating Outlook to Positive for Texas Mutual Insurance Company

[December 05, 2017]

A.M. Best Revises Issuer Credit Rating Outlook to Positive for Texas Mutual Insurance Company

A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of "a" of Texas Mutual Insurance Company (Texas Mutual). The outlook of the FSR remains stable.

The ratings reflect Texas Mutual's balance sheet strength, which A.M. Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The revised Long-Term ICR outlook reflects Texas Mutual's strong operating performance, which has helped generate a five-year compound annual growth rate in surplus of 13.5% through 2016 while supporting policyholder dividends that have averaged over 20% of net premiums earned over that period. A.M. Best expects the company's balance sheet strength to remain in the strongest category with leverage ratios over the past five years having moved to increasingly conservative levels. In addition, although Texas Mutual is limited to writing workers' compensation in Texas, its business profile also reflects its importance in providing coverage in the state as evidenced by its dominant 40% market share. Texas Mutual maintains an appropriate enterprise risk management program that reflects annual risk assessments, outlines risk appetiteand tolerances, as well as mitigation strategies.

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.

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