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AM Best Withdraws Credit Ratings of SPJST
[May 21, 2020]

AM Best Withdraws Credit Ratings of SPJST


AM Best has downgraded the Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "bb-" from "bb" of SPJST (Temple, TX). The outlook of the Credit Ratings (ratings) has been revised to stable from negative. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best's interactive rating process.

The ratings reflect SPJST's balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, limited business profile and weak enterprise risk management.

The ratings downgrade reflects the challenges for SPJST to re-establish positive trends in either premium or earnings, as well as both absolute and risk-adjusted capitalization, as measured by Best's Capital Adequacy Model. These rating actions also reflect the declining trend in SPJST's Best's Capital Adequacy Ratio (BCAR) score to the adequate level, driven largely by statutory net operating losses over the past two years. Additionally, SPJST's ratings reflect its relatively narrow business profile and an ERM framework that is still in the early stages of development.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including deails of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.



AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.



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