2009-04-27 20:23:02 -
A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of B++ (Good) and issuer credit ratings of “bbb” of Cameron Mutual Group (Cameron) and its members, Cameron Mutual Insurance Company and Cameron National Insurance Company. All entities are located in Cameron, MO.
The rating affirmations reflect Cameron’s adequate risk-adjusted capitalization, which has benefited
from an implementation of a multi-line quota-share agreement, and its continued consistent fee and investment income.
These positive factors are somewhat offset by the group’s unprofitable underwriting performance in recent years due to frequent and severe weather events. As a result, a downward trend in risk-adjusted capitalization has occurred, in conjunction with elevated underwriting leverage and expense ratios. In addition, the negative outlook reflects Cameron’s unprofitable underwriting performance trend in recent years with a resulting impact on the group’s risk-adjusted capital position.
However, the group continues to explore strategies and implement changes in underwriting guidelines designed to reduce exposure and improve its risk-adjusted capital position.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings :
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The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology :
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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com :
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A.M. Best Co.AnalystsRaymond Thomson,
908-439-2200, ext. 5621
raymond.thomson@ambest.com : mailto:raymond.thomson@ambest.com orJeffrey
Mango, CPA, 908-439-2200, ext. 5204
jeffrey.mango@ambest.com : mailto:jeffrey.mango@ambest.com orPublic
RelationsJim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com : mailto:james.peavy@ambest.com orRachelle
Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com
