OLDWICK, N.J.--(BUSINESS WIRE)--#insurance--AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a" (Excellent) to Carolina Mutual Insurance, Inc. (CMI) (High Point, NC). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect CMI's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings of CMI reflect the company's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). BCAR is more than sufficient to support CMI's underwriting and investment risks, as well as its current expansion plans. The company's capital position reflects its consistent positive operating performance, which has driven organic surplus growth as well as a conservative, high quality investment portfolio. The balance sheet strength assessment also considers significant balance sheet liquidity and favorable prior-year reserve development.
CMI has reported a history of profitable operating results, supported by favorable underwriting income and moderate investment returns. Loss and combined ratios compare favorably with the workers' compensation composite. Financial results benefit from CMI's expertise in small business segment, consistent focus on risk selection and underwriting profitability supported by proprietary technological capabilities. CMI achieved modest premium growth despite multiyear decreases in rates, and plans for further growth through geographic expansion. CMI maintains modest business concentration risk, operating as a monoline workers' compensation insurer focusing on small businesses, with a relatively high concentration of premium volume in a select number of states. CMI has experienced stable growth while continuing to expand into states at a conservative pace, remaining disciplined in underwriting and focused on profitability over growth.
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.
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