BancInsure Comments on A.M. Best Affirmation of A- (Excellent) and Revised Outlook

OKLAHOMA CITY--(BUSINESS WIRE)-- A.M. Best Company has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-“ for BancInsure, Inc. and also revised the ratings outlook to negative.

The rating affirmation is a reflection of BancInsure’s general business model and the company’s continued improvements since December 31, 2008. BancInsure remains challenged by a troubled sector of financial institutions driving current underwriting losses in Financial Institution Bond and Directors and Officers product lines.

"We are pleased with this affirmation. It is understandable that A.M. Best Company would demonstrate heightened awareness of the challenges we face in serving this sector of the insurance marketplace," commented Rodney N. Sargent, President and CEO. "The general outlook and perception surrounding banking is a negative one, yet we remain confident in our profitability initiatives and committed to the community bankers of this nation."

Losses stemming from the unprecedented national economic downturn and an alarming increase in the rate of bank failures continued to impact BancInsure, but to a much lesser degree in 2009 than in 2008. The total number of bank failures in the United States in 2008 and 2009 reached 165, more than six times the total of number of 27 bank failures in the previous seven years combined. Despite the ongoing financial crisis evidenced by those statistics and economic uncertainty in the financial institution market in particular, BancInsure has made significant strides towards recovery. In 2009, BancInsure’s underwriting losses across all product lines improved by 32% over 2008.

“We wear those losses as a badge of honor. The existence of those losses underscores our steadfast commitment to our customers and our partners in this time of continued economic uncertainty,” says Sargent. “This is a loss control success story, as the number of failing banks underwritten by BancInsure remains astonishingly low relative to our significant market share. We have carefully evaluated our exposure and appetites geographically and are underwriting and pricing according to these new dynamics."

“The significance of retaining our A- (Excellent) rating in this economy is not lost on BancInsure,” continues Sargent. “Our financial strength and stability are essential components of our success and we are resolved to demonstrate our strength and stability on behalf of our shareholders and insureds. We are confident that our efforts at diversification, underwriting improvements, and strong partnerships will continue to yield improved results over time."

Since 1992, BancInsure has proudly retained a Financial Strength Rating of A- (or greater) from A.M. Best Company. The company is dedicated to a niche of community banks, the majority of which are run with discipline and diligence. BancInsure retains an excellent business position with its continued close ties to community banks that include endorsement agreements with more than 18 separate bankers associations.

As a full-line independent insurer specific to financial institutions, BancInsure's understanding of financial institutions and their intricate operations is unmatched in the marketplace. This translates to extraordinary value through complete risk mitigation and risk management solutions. Headquartered in Oklahoma City and licensed in 48 states, BancInsure has proudly earned an industry leading 25% market share. www.bancinsure.com

BancInsure, Inc., Oklahoma City
Brandy Crawford, 405-290-5731
Marketing Manager
E-mail: [email protected]
Fax: 866-445-7712

Source: BancInsure, Inc.