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AM Best Assigns Issue Credit Rating to Pharmacists Mutual Insurance Company’s Newly Issued Surplus Notes


AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” to the newly issued $25 million, 7.375% surplus notes, due 2039, of Pharmacists Mutual Insurance Company (Pharmacists) (Algona, IA). The outlook assigned to the Credit Rating (rating) is stable.

The existing ratings of Pharmacists and its wholly owned subsidiary, Chiron Insurance Company, remain unchanged. The assigned Long-Term IR on the surplus notes is notched down two levels off the operating company’s Long-Term Issuer Credit Rating of “a”.

Pharmacists anticipates the proceeds from the surplus notes offered will be used for general corporate purposes. Following the issuance, AM Best expects Pharmacists’ balance sheet strength to remain very strong and that the financial leverage and interest coverage ratios will remain well within the guidelines for its current ratings.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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