A.M. Best Revises Outlook to Negative for Cameron Mutual Insurance Company and Its Affiliate

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of B+ (Good) and issuer credit ratings of “bbb-” of Cameron Mutual Insurance Company(Cameron) and its wholly owned subsidiary, Cameron National Insurance Company. Both companies are domiciled in Cameron, MO.

The revised outlook of Cameron reflects A.M. Best’s concerns regarding the company’s historical trend of operating losses and the challenges facing management to improve its results.

The ratings of Cameron also recognize its adequate capitalization and long-standing market presence in its key operating states of Missouri and Arkansas. Partly offsetting these positive rating factors are the company’s exposure to weather-related losses due to its geographic concentration in the Midwest and its elevated underwriting leverage.

Negative rating actions could occur if there were an unexpected and material decline in Cameron’s risk-adjusted capitalization, continued deterioration in its operating performance or a diminishing of its liquidity measures over the next several years.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
David Fidecaro, 908-439-2200, ext. 5420
Senior Financial Analyst
[email protected]
or
Rick Decker, 908-439-2200, ext. 5423
Assistant Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.