A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit ratings to “a-” from “bbb” of Producers Agriculture Insurance Group (ProAg) and its members, Producers Agriculture Insurance Company and Producers Lloyds Insurance Company.
Both companies are domiciled in Amarillo, Texas. All ratings have been removed from under review with developing implications and assigned a stable outlook.
The rating actions reflect the closure of the acquisition of ProAg by CUNA Mutual Investment Corporation (CMIC), a direct subsidiary of CUNA Mutual Insurance Society, and the explicit support afforded by a quota share reinsurance agreement with ProAg’s affiliate, CUMIS Insurance Society Inc. (CUMIS).
Under this agreement, ProAg cedes 100 percent of its net written premiums, after cessions to the Federal Crop Insurance Program and non-affiliated reinsurers, to CUMIS.
The ratings also reflect ProAg’s historical operating profitability, its established position in the multi-peril crop insurance market and its management expertise in that area.
Partially offsetting these positive factors are ProAg’s 2009 operating results, which reflect the adverse development of accident year 2008 reserves, and the potential impact of integration issues on the group.
Source: A.M. Best
Topics Texas Agribusiness AM Best
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