OLDWICK, N.J.--(BUSINESS WIRE)--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 Concurrently, AM Best has withdrawn the ratings of Cotton States Life Insurance Company at the company’s request to no longer participate in AM Best’s interactive rating process.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.
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