AM Best Upgrades Credit Ratings of CAMICO Mutual Insurance Company
16 Julio 2024 - 9:39AM
Business Wire
AM Best has upgraded the Financial Strength Rating to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating
to “a-” (Excellent) from “bbb+” (Good) of CAMICO Mutual Insurance
Company (CAMICO) (San Mateo, CA). The outlook of these Credit
Ratings (ratings) has been revised to stable from positive.
The ratings reflect CAMICO’s balance sheet strength, which AM
Best assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The rating upgrades reflect an improvement in the balance sheet
strength assessment to the higher end of the very strong category.
CAMICO maintains the strongest level of risk-adjusted
capitalization, as measured by Best’s Capital Adequacy Ratio
(BCAR). The company has reported surplus growth over the most
recent five-year period, despite ongoing partial surplus note
principal repayments. These trends have persisted through the first
quarter of 2024. Underwriting leverage metrics are low and compare
favorably with AM Best’s commercial casualty composite average.
Loss reserve development has become much more consistent, with
favorable development in recent years.
CAMICO’s operating performance has been adequate and the primary
driver of surplus growth. The company’s operating performance in
recent years reflects solid underwriting results that have
benefited from corrective actions taken by management in earlier
years, including shifting the insured base toward small lower-risk
firms amongst other underwriting and pricing actions. The limited
business profile assessment primarily reflects product and
geographic concentration risks due to CAMICO’s niche focus on
writing professional liability and employment practices liability
insurance coverages for small accounting firms, with slightly less
than half of direct premiums written in California as of year end
2023. An appropriate ERM program is in place, with well-identified
key risks and corresponding mitigation strategies.
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 Performance Assessments, 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. For more information,
visit www.ambest.com.
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Connor Brach, CFA, FRM Associate Director +1
908 882 1668 connor.brach@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Sharon Marks Director +1 908 882 2092
sharon.marks@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com