Ratings agency A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Missouri Employers Mutual Insurance Company (MEM) of Columbia, Mo.
The revised outlook reflects the recent moderate deterioration in MEM’s underwriting performance and A.M. Best’s expectation for continued weaker underwriting results over the near term. The downturn in underwriting performance is reflective of ongoing competitive market conditions and modest adverse loss reserve development in 2002 and prior accident years.
Despite the revised outlook, the affirmation of the ratings reflects MEM’s strong overall capitalization, historic track record of recording solid operating earnings and dominant position in the Missouri workers’ compensation market. While MEM is technically a state fund, it is not a state agency and is not the insurer of last resort or the residual market in Missouri, but it benefits from its ability to utilize multiple pricing tiers and its exemption from federal income taxes.
Source: A.M. Best
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