AM Best


A.M. Best Revises Outlooks to Negative for State Mutual Insurance Company


CONTACTS:

Richard McMillan
Senior Financial Analyst
+1 908 439 2200, ext. 5615
richard.mcmillan@ambest.com

Thomas Rosendale
Director
+1 908 439 2200, ext. 5201
thomas.rosendale@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 17, 2017 02:00 PM (EST)
A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of State Mutual Insurance Company (State Mutual) (Rome, GA).

The revised outlooks reflect a decline in surplus as a result of operating losses and capital losses from investments in 2016. A surplus relief reinsurance agreement in 2017 improved State Mutual’s surplus position from year-end 2016. However, operating losses due to continued high expenses, reduced premium as a result of the reinsurance transaction and continued capital losses have partially mitigated this increase through the third quarter. In addition, A.M. Best believes that the company’s most recent 2017 financial plans are unlikely to be achieved based on actual nine-month results.

State Mutual continues to hold higher risk assets in its investment portfolio that reduce liquidity and could result in future capital losses. A.M. Best will continue to monitor the company’s operating results and capital position, as it attempts to execute on its plans to grow its individual accident and health business.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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AMB# Company Name
007085 State Mutual Insurance Company