A.M. Best Upgrades Credit Ratings of CAMICO Mutual Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 12, 2018--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). 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 subsidiary 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 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
Edward J. Zonenberg, +1 908-439-2200, ext. 5135
Senior Financial Analyst
Sharon P. Marks, +1 908-439-2200, ext. 5477
Senior Financial Analyst
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 12:15 PM/DISC: 06/12/2018 12:15 PM