A.M. Best Removes Rating of CEM Insurance Company From Under Review.

OLDWICK, N.J. -- A.M. Best Co. has removed from under review with negative implications the financial strength rating (FSR) of B+ (Good) of CEM Insurance Company (CEMIC) (Deer Park, IL) and assigned a stable outlook. Concurrently, A.M. Best has affirmed the FSR and assigned an issuer credit rating (ICR) of "bbb-" to CEMIC. The outlook assigned to the ICR is stable.

These rating actions follow the infusion of capital into CEMIC, which brought risk-adjusted capitalization to the level required to maintain the current ratings. The ratings reflect the now-supportive level of risk-adjusted capital, the demonstrated willingness of the company's owner to maintain capital at an appropriate level and the recent improvements in CEMIC's operating performance.

Offsetting these positive rating factors are CEMIC's overall performance relative to its peer group, its limited business profile and the uncertainty related to the ultimate loss development of its new business.

The outlook reflects A.M. Best's expectation that risk-adjusted capital will remain supportive of the ratings in the near to mid term and that the new programs being implemented by the company will have a positive impact on earnings.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.