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A.M. Best Revises Outlooks to Positive for Southern Mutual Church Insurance Company
[June 12, 2018]

A.M. Best Revises Outlooks to Positive for Southern Mutual Church Insurance Company

A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a-" of Southern Mutual Church Insurance Company (SMCIC) (Columbia, SC).

The ratings reflect SMCIC's balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The revision in the outlooks reflects the favorable trend in SMCIC's underwriting and overall operating performance in recent years, which continues to strengthen its balance sheet. The company's better than average earnings are attributable to actions taken by management which include rate increases, deductibles and various loss control initiatives, among others. Risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), has improved in recent years through strong surplus growth and reduced exposure to catastrophe losses through restructuring of the reinsurance program. The business profile is limited, primarily due to a concentration of property risk in the Southeast United States.

The rating affirmations capture SMCIC's very strong risk-adjusted capital levels, the management team's long-term experience in their niche and focus on underwriting fundamentals. These factors are offset partially by the current competitive conditions within the commercial property market in which SMCIC operates.

The ratings may be considered for positive movement following continued balance sheet strengthening through favorable operating results over a period of time. Negative credit rating action may occur if SMCIC's underwriting results significantly worsen as a result of increased storm losses or elevated expenses, or if there is a deterioration in risk-adjusted capitalization.

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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