AM Best Assigns Credit Ratings to CompSource Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” to CompSource Mutual Insurance Company (CompSource Mutual) (Oklahoma City, Oklahoma). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CompSource Mutual’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

CompSource Mutual’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as strongest. The balance sheet strength assessment also considers the company’s underwriting leverage ratios, which compare favorably with the workers’ compensation (WC) composite, low reinsurance dependence with a high quality reinsurance panel, and a diverse investment portfolio with investment leverage metrics that are below the WC composite.

CompSource Mutual has generated an adequate level of operating performance, with most five-year operating metrics in line with or slightly outperforming the WC composite. The company’s results improved following mutualization and reforms in the Oklahoma WC system in 2014, which converted the system from a judicial-based system to an administrative-based system.

CompSource Mutual has limited business diversification as a mono-line WC insurer with geographic concentration. The company is licensed only in Oklahoma, leaving the company susceptible to potential judicial, legislative or regulatory changes in the WC market. AM Best considers CompSource Mutual’s risk-management capabilities appropriate for the company’s risk profile.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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