A.M. Best Revises Outlooks to Negative for Kentucky Employers’ Mutual Insurance
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 .
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CONTACT: A.M. Best
Senior Financial Analyst
+1 908 439 2200, ext. 5213
Jacqalene Lentz, CPA
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Director, Public Relations
+1 908 439 2200, ext. 5644
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