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A.M. Best Assigns Credit Ratings to CM Select Insurance Company; Affirms Credit Ratings of Members of Church Mutual Insurance Group
[May 17, 2018]

A.M. Best Assigns Credit Ratings to CM Select Insurance Company; Affirms Credit Ratings of Members of Church Mutual Insurance Group

A.M. Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (ICR) of "a" to CM Select Insurance Company (CM Select), a wholly owned subsidiary of Church Mutual Insurance Company (CMIC). The outlook assigned to the FSR is stable and the outlook assigned to the Long-Term ICR is positive. Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" of CMIC and its subsidiaries, CM Vantage Specialty Insurance Company (CM Vantage) and CM Regent Insurance Company (CM Regent) (Mechanicsburg, PA), collectively referred to as Church Mutual Insurance Group. The outlook of the FSR remains stable while the outlook of the Long-Term ICR remains positive. All companies are domiciled in Merrill, WI, unless otherwise specified.

The Credit Ratings (ratings) of CM Select recognize a 100% quota share reinsurance agreement between CM Select and CMIC. Incorporated on May 4, 2017, CM Select will offer products that can be purchased online that are specifically designed to meet the needs of smaller religious organizations. CM Select is expected to strengthen the Church Mutual brand, as it will leverage CMIC's experience and resources.

The ratings of the group reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The rating affirmations also reflect the group's risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio, effective reinsurance program, high quality investment portfolio and consistently favorable loss reserve development trends. The rating affirmations further consider the group's strong operating performance and CMIC's prominent market position within the eligious community, as well as its recent diversification initiatives in complimentary markets.

CMIC maintains a competitive advantage in its niche market and continues to invest and strengthen its brand through development of new products with effective control of distribution channels through the use of captive agents, independent agents, broker markets, excess and surplus lines and forthcoming E-commerce. These positive rating factors are partially offset by the group's exposure to weather-related events and elevated common stock leverage.

While the outlook for the FSR remains stable, continuation of the positive outlook on the Long-Term ICR reflects the expectation of sustained strong operating performance, despite modest volatility from weather-related events and balance sheet strength maintained at the strongest level. Prospectively, A.M. Best anticipates the group's capital positon to remain strongest with modest volatility in operating results based on management's robust analytical tool set used to effectively manage exposure concentration and catastrophe tail risk.

This press release relates to Credit Ratings 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 see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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