JUNE 16, 2016 03:30 PM (EDT)
A.M. Best Assigns Ratings to CM Vantage Specialty Insurance Company; Affirms Church Mutual Insurance Company
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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 16, 2016 03:30 PM (EDT)
A.M. Best has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of “a” to CM Vantage Specialty Insurance Company (CM Vantage), which was created in November 2015. The ratings recognize the 100% reinsurance agreement between CM Vantage and its parent, Church Mutual Insurance Company (Church). The outlook assigned to each rating is stable.
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the ICR of “a” of Church. The outlook for each rating is stable. Both companies are domiciled in Merrill, WI.
CM Vantage was formed to support Church’s diversification efforts by expanding its ability to write additional exposures in the religious institutional marketplace and other compatible markets. The company will provide its products as an excess and surplus lines writer with a focus on small- and middle-market accounts and distribute its products through a new group of producers that specialize in the surplus lines market. Overall risk management including risk selection, risk appetite and control systems, will operate within and be subject to Church’s existing risk management program while recognizing the unique characteristics this new business may have.
Additionally, the affirmation of Church’s ratings reflects its strong risk-adjusted capitalization, solid operating results and prominent position in the religious institutional marketplace. In recent years, Church has made strategic investments in operations and expertise that will continue to diversify its risk profile and expand its product suite.
Positive rating actions may occur if Church’s operating results continue to outperform its peers, while risk-adjusted capitalization remains strong.
The ratings could be negatively impacted by unfavorable operating results that drive a material decline in risk-adjusted capitalization.
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.
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