OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the newly issued $25 million, 7.375% surplus notes, due 2039, of Pharmacists Mutual Insurance Company (Pharmacists) (Algona, IA). The outlook assigned to the Credit Rating (rating) is stable.
The existing ratings of Pharmacists and its wholly owned subsidiary, Chiron Insurance Company, remain unchanged. The assigned Long-Term IR on the surplus notes is notched down two levels off the operating company’s Long-Term Issuer Credit Rating of “a”.
Pharmacists anticipates the proceeds from the surplus notes offered will be used for general corporate purposes. Following the issuance, AM Best expects Pharmacists’ balance sheet strength to remain very strong and that the financial leverage and interest coverage ratios will remain well within the guidelines for its current ratings.
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