Best’s News & Research Service - June 14, 2019 12:23 PM (EDT)
AM Best Withdraws Credit Ratings of Cotton States Life Insurance Company
- June 14, 2019 12:23 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Cotton States Life Insurance Company (Alpharetta, GA). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings of Cotton States Life Insurance Company at the company’s request to no longer participate in AM Best’s interactive rating process.
The rating of Cotton States Life Insurance Company reflects its balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile, appropriate enterprise risk management and partial rating enhancement received from COUNTRY Financial Property Casualty Group.
AM Best notes that Cotton States ceased issuing new policies in 2013, effectively placing the company into run-off status. While risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, premium and earnings trends have declined in the absence of new business. As there are currently no plans to begin issuing new business, these trends are expected to continue over the foreseeable future.
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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry.