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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 20, 2016 02:16 PM (EST)
A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a” from “bbb” of CM Regent Insurance Company (CM Regent) (Mechanicsburg, PA). The outlook of these Credit Ratings (ratings) is stable.
The rating upgrades reflect the approval of the 100% reinsurance agreement between CM Regent and its parent, Church Mutual Insurance Company (Church) by the Pennsylvania and Wisconsin regulatory authorities. CM Regent will benefit from the explicit support provided by the agreement with Church along with the implicit support that includes greater access to capital, an expanded platform into other compatible markets and new broker relationships. Prospectively, CM Regent will receive additional support in several key areas, including administrative, actuarial, legal and information technology. Also, CM Regent will benefit from risk management best practices that already exist at Church. Given the extensive explicit and implicit support provided to CM Regent, the ratings of Church have been extended to the company.
Positive rating action may occur if the company’s operating results continue to outperform its peers, while its capitalization and market position remain strong.
The ratings could be negatively impacted by future unfavorable operating performance or a material drop in risk-adjusted capitalization.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.