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| [June 12, 2018] |
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A.M. Best Upgrades Credit Ratings of CAMICO Mutual Insurance Company
A.M. Best has upgraded the Financial Strength Rating to B++
(Good) from B+ (Good) and the Long-Term Issuer Credit Rating to "bbb"
from "bbb-" of CAMICO Mutual Insurance Company (CAMICO) (San
Mateo, CA (News - Alert)). The outlook of these Credit Ratings (ratings) has been
revised to stable from positive.
The ratings reflect CAMICO's balance sheet strength, which A.M. Best
categorizes as very strong, as well as its marginal operating
performance, limited business profile and appropriate enterprise risk
management.
The rating upgrades reflect the continued improvement in the company's
underwriting performance in recent years due to corrective actions taken
by management. Management's improved risk management practices also
include the company's improved customer profile, reduced limits profile,
reinsurance changes, claims management changes and the company's ability
to reduce operating expenses via ceding commission. While management has
made progress over the years, these positive attributes are offset
partially by the company's modest operating margins and returns, the
adverse loss reserve development on prior accident years and the
inherent market risks associated with being a mono-line professional
liability insurer for accountants. In addition, CAMICO has had to
contribute capital to its wholly owned subsidiary, CAMICO Services,
Inc., in recent years. Additional capital may be required if the
subsidiar remains unprofitable; however, expense reduction initiatives
have been put into place to return this agency to profitability, which
management expects to achieve in 2018.
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/20180612006172/en/
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