A.M. Best Revises Issuer Credit Rating Outlook to Stable for SECURA Insurance, A Mutual Company and Its Subsidiary

A.M. Best Co. has revised the outlook for the issuer credit ratings (ICR) to stable from negative for SECURA Insurance, A Mutual Company and its wholly owned subsidiary, SECURA Supreme Insurance Company (collectively referred to as SECURA). A.M. Best also has affirmed SECURA's financial strength rating (FSR) of A (Excellent) and the ICRs of "a+". The outlook for the FSR is stable. Both companies are domiciled in Appleton, WI.

The revised outlook for the ICRs reflects SECURA's improved trend in underwriting results since 2012. SECURA's management team continues to implement strategies, which have led to improved performance, including the development and implementation of enhanced pricing models, expense management initiatives and targeted agency management action plans. Further contributing to the stabilized results has been better-than-average weather patterns across SECURA's operating territories.

The affirmation of SECURA's ratings reflects its strong risk-adjusted capitalization, long-standing regional business presence, conservative balance sheet and the benefits derived from its ongoing agency relationships and cultivation.

Offsetting these strengths was the modest decline in underwriting results experienced in a few of the last five years, which were driven by weather-related losses and competitive market conditions. Furthermore, SECURA's geographic concentration in the Midwest leaves it susceptible to competitive pressures and regional weather events.

A change to SECURA's ratings is unlikely in the near-to-mid-term. Favorable rating actions may occur if there is significant, sustained outperformance of its industry composite for both underwriting and operating results. Negative rating actions may occur if there is a significant decline in SECURA's operating results or a considerable deterioration in its risk-adjusted capitalization.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best
Adrienne Tortoriello, 908-439-2200, ext. 5088
Senior Financial Analyst
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Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
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Jennifer Marshall, 908-439-2200, ext. 5327
Assistant Vice President
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Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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