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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 16, 2016 03:28 PM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the financial strength rating to B++ (Good) from B+ (Good) and the issuer credit rating to “bbb” from “bbb-” of School Boards Insurance Company of Pennsylvania Inc. (SBIC) (Mechanicsburg, PA). The outlook assigned to each rating is stable.
The rating upgrades follow the announcement that Church Mutual Insurance Company (Church Mutual) completed its acquisition of SBIC and School Claims Services, LLC. The rating actions reflect A.M. Best’s expectation that SBIC will benefit from its position as a new member of the Church Mutual Insurance Group. Prospectively, A.M. Best expects SBIC’s earnings to strengthen due to an expanded business profile while also achieving enhanced financial flexibility and greater operational efficiencies. The company will further benefit from back office support functions including administration, actuarial, human resources, legal and information technology provided by Church Mutual. Somewhat offsetting these positive factors are the execution risks associated with SBIC’s successful migration onto Church Mutual’s operating platform over time.
Positive rating actions may occur if operating results continue to strengthen risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).
Negative rating actions may occur if operating results materially deteriorate, resulting in risk-adjusted capitalization that is not supportive of the rating, as measured by BCAR.
This press release relates to rating(s) 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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.