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A.M. Best Revises Outlooks to Negative for Kentucky Employers’ Mutual Insurance

October 2, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Oct 2, 2018--A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issue Credit Rating of “a-” of Kentucky Employers’ Mutual Insurance (KEMI) (Lexington, KY).

The ratings reflect KEMI’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The outlook revisions to negative largely reflect the uncertainty of the company’s exposure, partly arising from its position as a writer of last resort in Kentucky, to occupational disease claims from coal mining operations, particularly those brought under the Federal Coal Mine Health & Safety Act (FCMHSA). While it appears that KEMI is estimating loss reserves for those occupational disease exposures more conservatively, further pressure on its balance sheet may occur as the new reserving methodology was implemented just recently. In addition, year-to-year frequency for FCMHSA claims is sporadic as it tends to be closely correlated to mine closures.

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 .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

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/20181002005677/en/

CONTACT: A.M. Best

Carl Altenburg

Senior Financial Analyst

+1 908 439 2200, ext. 5213

carl.altenburg@ambest.com

or

Jacqalene Lentz, CPA

Director

+1 908 439 2200, ext. 5762

jacqalene.lentz@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA KENTUCKY NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 10/02/2018 10:14 AM/DISC: 10/02/2018 10:14 AM

http://www.businesswire.com/news/home/20181002005677/en

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