SOUTHFIELD, Mich., Aug. 2, 2013 /PRNewswire/ -- Meadowbrook Insurance Group, Inc. (NYSE:MIG) comments on A.M. Best decision to downgrade rating for Meadowbrook and its subsidiaries.
Robert S. Cubbin, Meadowbrook President and Chief Executive Officer, commented: "We were very disappointed by today's decision by A.M. Best to downgrade our rating to B++ (stable). We have been demonstrating progress towards our goal of a return to stable and profitable underwriting results. As we discussed in our recent earnings release and conference call, our prior year loss reserves on both continuing and discontinuing business on the majority of our reserve categories have remained fairly stable on a year-to-date basis, with one exception in a discontinued territory within the California workers' compensation business.
We have been targeting and achieving overall rate increases that have been in excess of the loss ratio trends and have demonstrated improvement in our underwriting results in the most recent accident years. Rate increases continue to accelerate in 2013.
As a result, we will seek to make arrangements with an A rated insurance company to issue policies in those programs and lines of business for which such a rating is required.
The Meadowbrook Board of Directors is undertaking a review of strategic alternatives and has engaged Willis Capital Markets & Advisory in connection with its evaluation.
About Meadowbrook Insurance Group
Meadowbrook Insurance Group, Inc., based in Southfield, Michigan, is a leader in the specialty program management market. Meadowbrook includes several agencies, claims and loss prevention facilities, self-insured management organizations and six property and casualty insurance underwriting companies. Meadowbrook has twenty-eight locations in the United States. Meadowbrook is a risk management organization, specializing in specialty risk management solutions for agents, professional and trade associations, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol "MIG". For further information, please visit Meadowbrook's corporate web site at http://www.meadowbrook.com.
Certain statements made by Meadowbrook Insurance Group, Inc. in this release may constitute forward-looking statements including, but not limited to, those statements that include the words "believes," "expects," "anticipates," "estimates," or similar expressions. Please refer to the Company's most recent 10-K, 10-Q, and other filings with the Securities and Exchange Commission for more information on risk factors. Actual results could differ materially. These forward-looking statements involve risks and uncertainties including, but not limited to the following: actions taken by regulators, rating agencies or lenders, including the impact of the downgrade by A.M. Best of the company's and its subsidiaries' financial strength rating; efforts to make arrangements with an A rated insurance company and with regard to the review of strategic alternatives; premium volume and operating leverage, the frequency and severity of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability or collectability of reinsurance; increased rate pressure on premiums and on underwriting criteria; ability to obtain rate increases in current market conditions; investment rate of return and losses (whether realized or unrealized) in the Company's investment portfolio; changes in and adherence to insurance or other regulation; attainment of certain processing efficiencies; changing rates of inflation; impairment of intangibles; general economic conditions; the Company's possible ability to implement its capital raising and capital preservation strategies in a timely manner; and other risks identified in the Company's reports filed with the Securities and Exchange Commission, any of which may have a material and adverse effect on the Company's results of operations and financial condition. Meadowbrook is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Meadowbrook Insurance Group, Inc.