Standard & Poor’s Ratings Services revised its financial strength rating on Casualty Reciprocal Exchange (CRE) and Equity Mutual Insurance Co. (EMI) to “R” from “CCCpi” after a county court judge placed the two Kansas City-based insurers into receivership. The ruling makes Missouri Department of Insurance director Scott Lakin the rehabilitator for CRE.
The two companies participate in an interaffiliate pool in which CRE has an 80 percent share and EMI has the remaining 20 percent. Headquartered in Kansas City, the pool writes mainly workers’ compensation and auto liability insurance, with an additional specialization in reinsurance. More than one half of the pool’s business lies within its major states of California, New Jersey, Texas, Florida, and Pennsylvania.
All tangible assets and renewal rights for existing insurance policies are being sold to Meadowbrook Group. Management of CRE, which is a member of the Dodson Group of Kansas City, agreed to the rehabilitation.
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