OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to Rural Trust Insurance Company (Rural Trust) (Dallas, TX). The outlook assigned to both ratings is stable.
The ratings reflect Rural Trust’s solid risk-adjusted capitalization, profitable projected overall operating results after its initial year of operation in 2014 and management’s niche expertise as a provider of insurance products to rural and independent telephone companies.
Rural Trust will commence its operations with strong initial capitalization. After a small net loss in 2014, strong underwriting and overall results have been projected in subsequent years. Despite Rural Trust’s lack of demonstrated operating performance, its management has a successful track record as a provider of insurance products to rural and independent telephone companies. In addition, the appropriate staff and operational infrastructure are in place to support initial activities and meet regulatory scrutiny.
Partially offsetting these positive rating factors are Rural Trust’s evolving business profile and related execution risk associated with the implementation of its strategic business plan. Although management has operated successfully in this market, Rural Trust is a new venture, and A.M. Best will continue to evaluate the rigor and effectiveness of Rural Trust’s business plan and monitor its strategic and financial development.
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.
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