AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of CM Select Insurance Company (CM Select) (Merrill, WI).
The actions on these Credit Ratings (ratings) follow the recent disclosure that Church Mutual Holding Company, Inc., entered into a definitive stock purchase agreement to sell its ownership of CM Select to MGT Partners, LLC. The transaction remains subject to regulatory approvals.
As a part of the transaction, CM Select will enter into an amended and restated reinsurance agreement to the existing reinsurance agreement with Church Mutual Insurance Company, S.I. (CMIC). As a part of the agreement, CMIC will reinsure all premiums and losses related to the legacy book written regarding religious institutions, non-profit organizations and camps.
Following the acquisition there is a potential for negative rating actions on the FSR and Long-Term ICR as a result of being detached from the larger Church Mutual Insurance Group and the associated strategic benefits therein. The ratings will remain under review until the close of the transaction and an assessment by AM Best of the new ownership’s strategic business plan.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Senior Financial Analyst
+1 908 882 1816
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
+ 1 908 882 1749
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098