OLDWICK, NJ–(BUSINESS WIRE)–AM Best upgraded the long-term issuer credit rating (long-term ICR) from “bbb” (good) to “bbb” (good) and affirmed the financial strength rating (FSR) of B++ (good) ) of CAMICO Mutual Insurance Company (CAMICO ) (San Mateo, CA). The outlook for the long-term ICR has been revised from positive to stable. The outlook for the FSR is stable.
The credit ratings (ratings) reflect the strength of CAMICO’s balance sheet, which AM Best rates as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.
CAMICO’s long-term KPI upgrade reflects a review of operational performance assessment from adequate to marginal. Results have improved significantly in recent years, primarily due to pricing improvements and underwriting initiatives. Overall underwriting results are in line with the five-year composite average combined ratio for commercial property and casualty insurance, with favorable reserve development reported over the past calendar and occurrence years. Operating results, as measured by the operating ratio, continue to be a few points below the composite average due to a low net investment income ratio due to interest expense on excess note outstanding. Nonetheless, the company has generated consistently positive net income over the past five-year period.
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