OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” of SPJST (Temple,TX).
These Credit Ratings (ratings) reflect SPJST’s balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, limited business profile and weak enterprise risk management (ERM).
The revision of the Long-Term ICR outlook to negative reflects the challenges for the SPJST to re-establish positive trends in earnings, as well as both absolute and risk-adjusted capitalization. These rating actions also reflect the significant recent decline in SPJST's Best's Capital Adequacy Ratio (BCAR) from the strong level to adequate, driven largely by statutory net operating losses over the past two years. Additionally, SPJST’s ratings reflect the Society’s relatively narrow business profile, an ERM framework that is still in the early stages of development and mixed statutory operating results in recent years.
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