AM Best reaffirms Church Mutual’s financial strength
MERRILL, Wis. - AM Best has reaffirmed Church Mutual Insurance Company’s Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a.” The Long-Term ICR outlook has been revised from positive to stable while the FSR outlook maintains its stable rating from last year.
These ratings apply to Church Mutual Insurance Company and its wholly owned subsidiaries: CM Regent Insurance Company, CM Select Insurance Company and CM Vantage Insurance Company. The ratings of the group reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Church Mutual’s operating results in 2018 were negatively impacted by higher catastrophe losses, increased large losses, freeze claims, wildfires and adverse loss reserve development. However, the stable outlook is a vote of confidence from AM Best that Church Mutual has the financial strength to rebound from the weather-related losses of 2018.
“I am extremely pleased with this result and feel it is the best possible outcome,” said Jeff Steffen, Church Mutual’s chief financial officer. “AM Best listened to our presentation and management’s belief that we have good processes in place to ensure 2019 is not a repeat of 2018.”
Church Mutual’s neutral business profile reflects its position as a market leader providing insurance services for religious institutions and related ministries.
According to AM Best, “Over the past several years, the group has increased its focus on strong brand awareness and expanded its business into new markets and niches. The group also benefits from its proactive use of sophisticated pricing tools and data management. The group’s ERM framework and risk management capabilities are considered appropriate for the risk profile of the organization. The ERM process includes a strong risk-awareness culture and corporate governance that is supported by the board of directors. In addition, stress testing is performed and capital modeling account for tail risk and market corrections.”
About AM Best
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.
About Church Mutual
Church Mutual Insurance Company, founded in 1897, offers specialized insurance for religious organizations of all denominations, public and private K-12 schools, colleges and universities, senior living facilities, camps and conference centers, and nonprofit and human services organizations throughout the United States. Church Mutual markets most lines of commercial property and liability insurance, including multi-peril, workers' compensation and commercial auto insurance. In addition to insurance, Church Mutual provides a spectrum of value-added solutions that benefit its customers. Church Mutual holds the following honors:
- AM Best Company "A" (excellent) rating
- 2018 Ward’s 50 Top Performing Property and Casualty Insurers
- BenchmarkPortal Top 10 National Customer Service Center
- Wisconsin 75 by Deloitte US, 2016, 2017 and 2018
- Futuremakers Partner, by Wisconsin Technical College System
- Celent Model Insurer for innovation and emerging technologies
- Award in Innovation for entrepreneurialism and innovation, by National Association of Mutual Insurance Companies
- 2018-2019 Employer of the Year, by Northcentral Technical College