OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of CAMICO Mutual Insurance Company (CAMICO) (San Mateo, CA). The outlook of the Long-Term ICR has been revised to stable from positive. The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect CAMICO’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The upgrade of CAMICO’s Long-Term ICR reflects a revision in the operating performance assessment to adequate from marginal. Results have improved significantly in recent years, primarily due to pricing improvements and underwriting initiatives. Overall underwriting results are in line with the commercial casualty composite five-year average combined ratio, with favorable reserve development reported on recent calendar and accident years. Operating results, as measured by the operating ratio, continue to lag the composite average by a few points due to a low net investment income ratio as a result of interest expense on the outstanding surplus note. Nevertheless, the company has generated consistently positive net income over the most recent five-year period.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Connor Brach, FRM
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