A.M. Best Co. has lowered the financial strength rating of Long Grove, Ill.-based Kemper Insurance Cos. to “B” (fair) from “B+” (very good).
The rating remains under review with negative implications. Additionally, A.M. Best has lowered the debt rating of the surplus notes to “ccc+” from “bb-” issued by Lumbermens Mutual Casualty Co., the lead member of the inter-company pool and group.
The lowering of the Kemper rating is a result of its weakened capitalization, the ongoing operating uncertainties and execution risk associated with management’s announced restructuring initiatives, including the sale of the renewal rights to various lines of business, including its financial lines, bundled and unbundled large risk national accounts, alternative risk programs, environmental and excess casualty and surety business.
The rating also reflects the weakened liquidity and cash flow following the sale of many books of business, an A.M. Best statement said.
The rating will remain under review with negative implications pending the analysis of year-end 2002 financials.
Topics AM Best
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