A.M. Best Revises Outlooks to Positive for Southern Mutual Church Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 12, 2018--A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Southern Mutual Church Insurance Company (SMCIC) (Columbia, SC).
The ratings reflect SMCIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The revision in the outlooks reflects the favorable trend in SMCIC’s underwriting and overall operating performance in recent years, which continues to strengthen its balance sheet. The company’s better than average earnings are attributable to actions taken by management which include rate increases, deductibles and various loss control initiatives, among others. Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has improved in recent years through strong surplus growth and reduced exposure to catastrophe losses through restructuring of the reinsurance program. The business profile is limited, primarily due to a concentration of property risk in the Southeast United States.
The rating affirmations capture SMCIC’s very strong risk-adjusted capital levels, the management team’s long-term experience in their niche and focus on underwriting fundamentals. These factors are offset partially by the current competitive conditions within the commercial property market in which SMCIC operates.
The ratings may be considered for positive movement following continued balance sheet strengthening through favorable operating results over a period of time. Negative credit rating action may occur if SMCIC’s underwriting results significantly worsen as a result of increased storm losses or elevated expenses, or if there is a deterioration in risk-adjusted capitalization.
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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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CONTACT: A.M. Best
Connor Brach, FRM, +1 908 439 2200, ext. 5573
Charles M. Huber, +1 908 439 2200, ext. 5122
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 06/12/2018 02:26 PM/DISC: 06/12/2018 02:26 PM