Equity Mutual S&P Ratings Lowered to 'CCC'

Standard & Poor's Ratings Services yesterday said it lowered its counterparty credit and financial strength ratings on Equity Mutual Insurance Co. (EMI) to 'CCCpi' from 'BBpi'. "The rating action reflects the significant decline in capitalization and surplus, poor operating results, and adverse reserve development of the interaffiliate pool EMI participates in with Casualty Reciprocal Exchange (CRE), in which CRE receives 80% and EMI the other 20%," noted Standard & Poor's credit analyst Alan Koerber. Headquartered in Kansas City, Mo., this pool writes mainly workers' compensation and auto...