AM Best Information Services

JULY 20, 2021 04:06 PM (EDT)

AM Best Revises Issuer Credit Rating Outlook to Negative for Cameron Mutual Insurance Company

 Maxwell Gilberg
Financial Analyst
+1 908 439 2200, ext. 5684

Michelle Baurkot
+1 908 439 2200, ext. 5314

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


OLDWICK - JULY 20, 2021 04:06 PM (EDT)
AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of “bb+” (Fair) of Cameron Mutual Insurance Company (Cameron Mutual) (Cameron, MO). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Cameron Mutual’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The revised Long-Term ICR outlook to negative reflects ongoing surplus erosion from significant underwriting losses that pressures Cameron Mutual’s overall balance sheet strength. The Long-Term ICR outlook further considers underwriting leverage metrics, which nearly double the private passenger standard auto and homeowners composite and the recent trend of adverse loss reserve development. Cameron Mutual’s marginal operating performance reflects annual underwriting losses, driven by weather-related losses and increased frequency and severity in auto lines, as well as an above average expense ratio due to information technology investments and higher commissions. The limited business profile reflects the company’s geographic concentration in the Midwest region and exposure to severe weather-related losses. AM Best views Cameron Mutual’s ERM as marginal, as the program has not proven effective in limiting losses and meeting projected results.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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AMB# Company Name
005715 Cameron Mutual Group
000861 Cameron Mutual Insurance Company