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ABOUT USIn The NewsA.M. Best Upgrades and Assigns Ratings to Trustmark; Revises Outlook to StableOLDWICK, N.J., November 6, 2007 — A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and the issuer credit ratings (ICR) to “a-” from “bbb+” of Trustmark Insurance Company (Trustmark) and Trustmark Life Insurance Company (Trustmark Life) (both of Lake Forest, IL). A.M. Best also has assigned an ICR of “bbb-” with a stable outlook to Trustmark Group, Inc. Concurrently, A.M. Best has upgraded the debt rating to “bb+” from “bb” on $75 million trust preferred securities, due 2035 of Trustmark Finance Trust I. The outlook for all remaining ratings has been revised to stable from positive. The upgrades and revised outlook reflect the recent settlement of a complex, longstanding legal dispute regarding Trustmark’s involvement in a troubled workers’ compensation reinsurance pool (WEB). The settlement outcome was reflected in third quarter 2007 financials and had a relatively modest impact on the company’s overall capital position. Additional factors include Trustmark’s favorable overall operating results and strong risk-based capital position, as well as the diversity within the group as Trustmark further emphasizes its position in both the worksite and association health marketplaces. Trustmark has reported encouraging operating results in its voluntary benefits business and has plans for growth, including expanded distribution channels, product enhancement and administrative efficiencies. With the litigation settled, Trustmark faces the challenge of continued growth in the voluntary benefits market segment and the expansion of selected core businesses. A.M. Best also notes the organization has incurred losses for several years as it attempts to grow its third party administrator (TPA) and fraud prevention businesses. [Back to Press Release List] |
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