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A.M. Best Revises Outlook to Positive for Southern States Insurance Exchange CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., June 4, 2008—A.M. Best Co. has revised the rating outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-”of Southern States Insurance Exchange (SSIE/the Exchange) (Richmond, VA). The rating reflects SSIE’s excellent balance sheet strength, history of operating profitability and proven underwriting expertise in its niche market. Partially offsetting these positive rating factors is SSIE’s limited market profile as it provides coverage to a specific population of customers relating to the agricultural industry. The Exchange derives approximately one-half of its in-force premiums from its founder and largest subscriber, Southern States Cooperative (SSC) and approximately 48% of capital and surplus consists of the subscriber savings accounts of SSC. SSC and SSIE have been successfully aligned business affiliates since inception, which spans more than a half century. The attorney-in-fact operating the Exchange is wholly owned by SSC, as is the independent insurance agency that represents the Exchange on a fairly exclusive basis. SSIE maintains a competitive expense advantage derived from its direct distribution system and strict underwriting and loss control guidelines. It maintains a high subscriber retention rate, partially due to its history of sharing profits as well as its strong client services. For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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