Press Release - JUNE 12, 2018
A.M. Best Upgrades Credit Ratings of CAMICO Mutual Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 12, 2018
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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