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OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb+” from “a-” of Slavonic Mutual Fire Insurance Association and its wholly owned subsidiary, Slavonic Insurance Company of Texas (both domiciled in Rosenberg, TX) (together known as Slavonic Mutual Group). The outlook for these Credit Ratings (ratings) has been revised to stable from negative. Concurrently, these ratings have been withdrawn as the company has requested to no longer participate in AM Best’s interactive rating process.

These ratings reflect Slavonic Mutual Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management.

The downgrades reflect Slavonic Mutual Group’s diminished business profile, which is very constrained as it writes a limited product base within a declining niche market. In addition, it operates within a tight geographic spread in Texas, which exposes it to frequent and severe localized weather events. The company’s niche market of fraternal organizations continues to decline significantly due to an aging population and has shown little signs of reversal or growth in the near future. Further, Slavonic Mutual Group’s limited product base consists of homeowners insurance that primarily covers fire loses and is limited to write only fire insurance under the Texas Insurance Code. With greater demand for bundled, comprehensive products, Slavonic Mutual Group’s product offering cannot compete against carriers offering these broader types of products to the public.

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 details 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.

Contacts

Angelo Lozano
Senior Financial Analyst
+1 908 439 2200, ext. 5169
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Joseph Burtone
Director
+1 908 439 2200, ext. 5125
[email protected]

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]

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