OLDWICK, N.J., Feb 22, 2012 (BUSINESS WIRE) — A.M. Best Co. has assigned a debt rating of “bbb” to the recently issued CAD 250 million, non-cumulative rate reset Class 1 shares Series 7 of Manulife Financial Corporation (MFC). This offering represents a five-year reset on MFC’s Class 1 shares issued at CAD 25 per share. Concurrently, A.M. Best has assigned a debt rating of “a” to the recently issued CAD 500 million, 4.165% non aggregate principal fixed/floating subordinated debentures due June 1, 2022 of The Manufacturers Life Insurance Company (MLI) (both domiciled in Toronto, Canada). The outlook assigned to both ratings is stable.

The stable outlook is consistent with the outlook of all the other existing ratings of MFC and its core operating insurance subsidiaries. (Please see A.M. Best’s press release dated December 12, 2011.)

The proceeds from the offering will be utilized for general corporate purposes by MFC, including investments in its subsidiaries. With the issuance of the preferred shares and subordinated debentures, A.M. Best notes that MFC’s existing financial leverage remains within the upper end of the range that supports its current ratings. The company’s reported International Financial Reporting Standards’ financial results in the fourth quarter of 2011 have remained modest due to the unfavorable impact of changes to interest rates and equity markets, changes to actuarial methods and assumptions, and a CAD 665 million goodwill impairment charge in the fourth quarter of 2011.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “A.M. Best’s Ratings & the Treatment of Debt” and “Equity Credit for Hybrid Securities.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com .

Copyright (C) 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

        A.M. Best Co.
        Edward Kohlberg, 908-439-2200, ext. 5664
        Financial Analyst
        edward.kohlberg@ambest.com
        or
        Raj Shah, 908-439-2200, ext. 5409
        Assistant Vice President
        raj.shah@ambest.com
        or
        Rachelle Morrow, 908-439-2200, ext. 5378
        Senior Manager, Public Relations
        rachelle.morrow@ambest.com
        or
        Jim Peavy, 908-439-2200, ext. 5644
        Assistant Vice President, Public Relations
        james.peavy@ambest.com

Copyright Business Wire 2012

OLDWICK, N.J., Feb 22, 2012 (BUSINESS WIRE) — A.M. Best Co. has assigned a debt rating of “bbb” to the recently issued CAD 250 million, non-cumulative rate reset Class 1 shares Series 7 of Manulife Financial Corporation (MFC). This offering represents a five-year reset on MFC’s Class 1 shares issued at CAD 25 per share. Concurrently, A.M. Best has assigned a debt rating of “a” to the recently issued CAD 500 million, 4.165% non aggregate principal fixed/floating subordinated debentures due June 1, 2022 of The Manufacturers Life Insurance Company (MLI) (both domiciled in Toronto, Canada). The outlook assigned to both ratings is stable.

The stable outlook is consistent with the outlook of all the other existing ratings of MFC and its core operating insurance subsidiaries. (Please see A.M. Best’s press release dated December 12, 2011.)

The proceeds from the offering will be utilized for general corporate purposes by MFC, including investments in its subsidiaries. With the issuance of the preferred shares and subordinated debentures, A.M. Best notes that MFC’s existing financial leverage remains within the upper end of the range that supports its current ratings. The company’s reported International Financial Reporting Standards’ financial results in the fourth quarter of 2011 have remained modest due to the unfavorable impact of changes to interest rates and equity markets, changes to actuarial methods and assumptions, and a CAD 665 million goodwill impairment charge in the fourth quarter of 2011.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “A.M. Best’s Ratings & the Treatment of Debt” and “Equity Credit for Hybrid Securities.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com .

Copyright (C) 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

        A.M. Best Co.
        Edward Kohlberg, 908-439-2200, ext. 5664
        Financial Analyst
        edward.kohlberg@ambest.com
        or
        Raj Shah, 908-439-2200, ext. 5409
        Assistant Vice President
        raj.shah@ambest.com
        or
        Rachelle Morrow, 908-439-2200, ext. 5378
        Senior Manager, Public Relations
        rachelle.morrow@ambest.com
        or
        Jim Peavy, 908-439-2200, ext. 5644
        Assistant Vice President, Public Relations
        james.peavy@ambest.com

Copyright Business Wire 2012

South Carolina consumers rank among the best in the nation when it comes to managing credit, a new survey says.

At the same time, the state is among the Top 10 in the nation for its average number of households in financial distress.

That’s according to the latest Consumer Distress Index published quarterly by CredAbility, a leading nonprofit credit counseling and education agency.

South Carolina is the nation’s ninth most distressed state in the nation, according to the Index, which tracks the financial condition of the average U.S. household by measuring five categories: employment, housing, credit, how families manage household budgets and net worth.

A score below 70 on the Index’s 100-point indicates a state of financial distress. South Carolina’s fourth quarter 2011 score overall was 64.3, the report said. The score for U.S. households was 67.6.

South Carolina’s strongest score was in the credit category.

This category assesses the strength of the consumer’s credit scores and how well they manage credit, according to Brent Bishop, a spokesman in CredAbility’s Spartanburg office.

South Carolina ranked in the best 15 states in the nation in that credit category, Bishop said. “However, we were in the bottom 10 states in employment, household budget and net worth,” he said.

The state’s scores for employment, housing, credit, household and net worth were 44.7, 66.7. 89.0. 60.5, and 60.7 respectively.

The nation as a whole had a 67.6 overall score, with a 56.3, 65.5, 86.1, 65.9, and 64.2, respectively, in employment, housing, credit, household budget, and net worth, despite the improving job picture.

“The addition of 2.8 million jobs in the past two years and the ability to manage credit wisely is helping millions of households move in the right direction,” said Mark Cole, chief operating officer of CredAbility and author of the Consumer Distress Index. “However, the average U.S. household remains in financial distress. Mortgage delinquency rates remain above 8 percent, the number of households receiving food stamps is still at historic levels and gasoline and food prices continue to push higher. After essential expenses, many households have little money left to cut from their household budgets.”

South Carolina consumers rank among the best in the nation when it comes to managing credit, a new survey says.

At the same time, the state is among the Top 10 in the nation for its average number of households in financial distress.

That’s according to the latest Consumer Distress Index published quarterly by CredAbility, a leading nonprofit credit counseling and education agency.

South Carolina is the nation’s ninth most distressed state in the nation, according to the Index, which tracks the financial condition of the average U.S. household by measuring five categories: employment, housing, credit, how families manage household budgets and net worth.

A score below 70 on the Index’s 100-point indicates a state of financial distress. South Carolina’s fourth quarter 2011 score overall was 64.3, the report said. The score for U.S. households was 67.6.

South Carolina’s strongest score was in the credit category.

This category assesses the strength of the consumer’s credit scores and how well they manage credit, according to Brent Bishop, a spokesman in CredAbility’s Spartanburg office.

South Carolina ranked in the best 15 states in the nation in that credit category, Bishop said. “However, we were in the bottom 10 states in employment, household budget and net worth,” he said.

The state’s scores for employment, housing, credit, household and net worth were 44.7, 66.7. 89.0. 60.5, and 60.7 respectively.

The nation as a whole had a 67.6 overall score, with a 56.3, 65.5, 86.1, 65.9, and 64.2, respectively, in employment, housing, credit, household budget, and net worth, despite the improving job picture.

“The addition of 2.8 million jobs in the past two years and the ability to manage credit wisely is helping millions of households move in the right direction,” said Mark Cole, chief operating officer of CredAbility and author of the Consumer Distress Index. “However, the average U.S. household remains in financial distress. Mortgage delinquency rates remain above 8 percent, the number of households receiving food stamps is still at historic levels and gasoline and food prices continue to push higher. After essential expenses, many households have little money left to cut from their household budgets.”

OLDWICK, N.J., Feb 22, 2012 (BUSINESS WIRE) — A.M. Best Co. has affirmed the financial strength ratings of A- (Excellent) and issuer credit ratings of “a-” and revised the outlook to negative from stable for Cumberland Insurance Group (CIG), its member, The Cumberland Mutual Fire Insurance Company (Cumberland Mutual) and Cumberland Insurance Company, Inc. (CIC). All companies are headquartered in Bridgeton, NJ.

The negative outlook for CIG is based on its unfavorable five-year operating performance and surplus deterioration, which was driven by significant underwriting losses and gradually declining net investment income. The company’s underwriting deficits were primarily attributable to increased storm losses, greater fire loss activity and adverse loss reserve development on its homeowners’ and commercial multi-peril lines of business. Due to its property concentration in the northeast, CIG is exposed to weather-related losses, as well as adverse judicial and regulatory actions. CIG’s ratings are based on the consolidation of Cumberland Mutual and its wholly owned but separately rated subsidiary, CIC. The negative outlook for CIC is based upon the deterioration in the operating performance of its ultimate parent, Cumberland Mutual.

The affirmation of CIG’s ratings is based on its strong risk-adjusted capitalization and long-standing market presence as a leading property writer in New Jersey. CIG’s capital position is primarily derived from its modest underwriting leverage, which compares favorably to industry norms. CIG maintains its established market presence and long-standing relationships through its independent agency force. In an effort to improve underwriting results, CIG is in the process of implementing numerous strategic initiatives to update its technology and processes. These strategic initiatives include implementing rate adjustments, de-leveraging unprofitable premium, enhancing pricing tools, implementing stricter underwriting guidelines and improving rate adequacy on coastal accounts. In addition, CIG has continued its strategy of reducing its geographic concentration through the expansion of its core products outside of New Jersey. A comprehensive reinsurance program reduces CIG’s net exposure to a catastrophe event to a manageable level.

CIC’s ratings are based on its solid risk-adjusted capitalization, improved earnings in recent years and local market knowledge. In addition, the ratings recognize the financial and operational support and common management provided by its ultimate parent, Cumberland Mutual, a multi-line carrier writing business primarily in New Jersey. While CIC primarily writes workers’ compensation business in the highly competitive and regulated New Jersey market, its geographic expansion and introduction of new product offerings should serve to reduce its concentration of risk over the near term. In recent years, CIC’s operating earnings significantly increased, driven by favorable underwriting earnings, solid investment income and realized capital gains from the sale of a substantial portion of its common stock portfolio. The improved underwriting results were driven by improved workers’ compensation loss experience and favorable loss reserve development.

For CIG, negative rating actions could occur from the continuation of its adverse operating performance and/or surplus deterioration that has been reported in recent years, driven by severe weather-related losses. For CIC, negative rating actions could be the result of unfavorable operating performance and/or surplus deterioration, driven by adverse development in its workers’ compensation line of business or a downgrade of the ratings of Cumberland Mutual.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Rating Members of Insurance Groups”; “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Catastrophe Analysis in A.M. Best Ratings”; and “The Treatment of Terrorism Risk in the Rating Evaluation.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com .

Copyright (C) 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

        A.M. Best Co.
        Kenneth Tappen, 908-439-2200, ext. 5248
        Senior Financial Analyst
        kenneth.tappen@ambest.com
        or
        Joseph Burtone, 908-439-2200, ext. 5125
        Assistant Vice President
        joseph.burtone@ambest.com
        or
        Rachelle Morrow, 908-439-2200, ext. 5378
        Senior Manager, Public Relations
        rachelle.morrow@ambest.com
        or
        Jim Peavy, 908-439-2200, ext. 5644
        Assistant Vice President, Public Relations
        james.peavy@ambest.com

Copyright Business Wire 2012

OLDWICK, N.J., Feb 22, 2012 (BUSINESS WIRE) — A.M. Best Co. has affirmed the financial strength ratings of A- (Excellent) and issuer credit ratings of “a-” and revised the outlook to negative from stable for Cumberland Insurance Group (CIG), its member, The Cumberland Mutual Fire Insurance Company (Cumberland Mutual) and Cumberland Insurance Company, Inc. (CIC). All companies are headquartered in Bridgeton, NJ.

The negative outlook for CIG is based on its unfavorable five-year operating performance and surplus deterioration, which was driven by significant underwriting losses and gradually declining net investment income. The company’s underwriting deficits were primarily attributable to increased storm losses, greater fire loss activity and adverse loss reserve development on its homeowners’ and commercial multi-peril lines of business. Due to its property concentration in the northeast, CIG is exposed to weather-related losses, as well as adverse judicial and regulatory actions. CIG’s ratings are based on the consolidation of Cumberland Mutual and its wholly owned but separately rated subsidiary, CIC. The negative outlook for CIC is based upon the deterioration in the operating performance of its ultimate parent, Cumberland Mutual.

The affirmation of CIG’s ratings is based on its strong risk-adjusted capitalization and long-standing market presence as a leading property writer in New Jersey. CIG’s capital position is primarily derived from its modest underwriting leverage, which compares favorably to industry norms. CIG maintains its established market presence and long-standing relationships through its independent agency force. In an effort to improve underwriting results, CIG is in the process of implementing numerous strategic initiatives to update its technology and processes. These strategic initiatives include implementing rate adjustments, de-leveraging unprofitable premium, enhancing pricing tools, implementing stricter underwriting guidelines and improving rate adequacy on coastal accounts. In addition, CIG has continued its strategy of reducing its geographic concentration through the expansion of its core products outside of New Jersey. A comprehensive reinsurance program reduces CIG’s net exposure to a catastrophe event to a manageable level.

CIC’s ratings are based on its solid risk-adjusted capitalization, improved earnings in recent years and local market knowledge. In addition, the ratings recognize the financial and operational support and common management provided by its ultimate parent, Cumberland Mutual, a multi-line carrier writing business primarily in New Jersey. While CIC primarily writes workers’ compensation business in the highly competitive and regulated New Jersey market, its geographic expansion and introduction of new product offerings should serve to reduce its concentration of risk over the near term. In recent years, CIC’s operating earnings significantly increased, driven by favorable underwriting earnings, solid investment income and realized capital gains from the sale of a substantial portion of its common stock portfolio. The improved underwriting results were driven by improved workers’ compensation loss experience and favorable loss reserve development.

For CIG, negative rating actions could occur from the continuation of its adverse operating performance and/or surplus deterioration that has been reported in recent years, driven by severe weather-related losses. For CIC, negative rating actions could be the result of unfavorable operating performance and/or surplus deterioration, driven by adverse development in its workers’ compensation line of business or a downgrade of the ratings of Cumberland Mutual.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Rating Members of Insurance Groups”; “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Catastrophe Analysis in A.M. Best Ratings”; and “The Treatment of Terrorism Risk in the Rating Evaluation.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com .

Copyright (C) 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

        A.M. Best Co.
        Kenneth Tappen, 908-439-2200, ext. 5248
        Senior Financial Analyst
        kenneth.tappen@ambest.com
        or
        Joseph Burtone, 908-439-2200, ext. 5125
        Assistant Vice President
        joseph.burtone@ambest.com
        or
        Rachelle Morrow, 908-439-2200, ext. 5378
        Senior Manager, Public Relations
        rachelle.morrow@ambest.com
        or
        Jim Peavy, 908-439-2200, ext. 5644
        Assistant Vice President, Public Relations
        james.peavy@ambest.com

Copyright Business Wire 2012