A.M. Best Places Ratings of School Boards Insurance Company of Pennsylvania, Inc. under Review with Positive Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has placed under review with positive implications the financial strength rating of B+ (Good) and the issuer credit rating of “bbb-” of School Boards Insurance Company of Pennsylvania, Inc. (SBIC) (Mechanicsburg, PA) following the announcement on October 13, 2015 that it will be acquired by Church Mutual Insurance Company (Church Mutual). The close of the transaction is expected during the second quarter of 2016, pending approval by regulators.

The rating actions for SBIC reflect the near-term prospects for improvements in its business profile, enhanced financial flexibility and operating efficiencies resulting from its ownership by a significantly larger, well-run and strongly capitalized organization. These benefits are partially offset by the execution risk associated with the transaction.

The under review status will be removed shortly after the transaction has closed and A.M. Best has reviewed the final integration plan and financial position of SBIC.

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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A.M. Best Co.

Dan Teclaw
Senior Financial Analyst

(908) 439-2200, ext. 5394

[email protected]

or

Darian Ryan
Senior Financial Analyst

(908) 439-2200, ext. 5449

[email protected]

or

Christopher Sharkey
Manager, Public Relations

(908) 439-2200, ext. 5159

[email protected]

or

Jim Peavy
Assistant Vice President, Public Relations

(908) 439-2200, ext. 5644

[email protected]

Source: A.M. Best Co.