AM Best revises issuer credit rating outlook to negative for Cameron Mutual Insurance Company

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook for the long-term issuer credit rating (long-term ICR) from stable to negative and confirmed the financial strength rating (FSR) of B (Fair) and the long-term ICR of “Bb +” (Fair) from Cameron Mutual Insurance Company (Cameron Mutual) (Cameron, MO). The outlook for the FSR is stable.

Credit ratings reflect the strength of Cameron Mutual’s balance sheet, which AM Best considers strong, as well as its marginal operational performance, limited business profile and marginal enterprise risk management (ERM).

The revised long-term ICR outlook to negative reflects the continued erosion of surplus due to large underwriting losses weighing on the overall strength of Cameron Mutual’s balance sheet. The long-term outlook for the ICR also takes into account measures of underwriting leverage, which nearly double the standard composite of cars and owners for private passengers and the recent unfavorable development trend of the reserve for private passengers. sinister. Cameron Mutual’s marginal operating performance reflects annual underwriting losses, due to weather-related losses and the increased frequency and severity of auto insurance, as well as an above-average expense ratio due to investments in information technology and higher commissions. The limited business profile reflects the Company’s geographic focus in the Midwest region and its exposure to losses from extreme weather conditions. AM Best considers Cameron Mutual’s ERM to be marginal because the program has not been shown to be effective in limiting losses and achieving expected results.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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