A.M. Best affirms Royal Neighbors' A- (Excellent) rating
6/13/2006
(Rock Island, IL)—A.M. Best, the internationally respected insurance industry rating agency, has reaffirmed Royal Neighbors of America's A- (Excellent) rating as of May, 2006. The ratings of the A.M. Best Company are recognized as the benchmark for assessing insurers' financial strength and reflect an in-depth understanding of business fundamentals. They have become an important factor in consumers' decisions to purchase insurance. In the opinion of A.M. Best, companies achieving A- ratings have a strong ability to meet their ongoing obligations to policyholders.
A.M. Best noted that the A- rating reflects Royal Neighbors' risk-adjusted capitalization and its well established fraternal presence and large national membership base. It also acknowledged that the newly appointed management team has strategic initiatives in place to encourage membership growth, increase premiums, and lower expenses by focusing on the financial, physical, and emotional needs of women.
"We are pleased that A.M. Best recognizes our significant successes of the past year. Our membership growth, our strong fraternal presence across America, and our cost reduction initiatives demonstrate our commitment to the future," said Cynthia Tidwell, President/CEO of Royal Neighbors. "This rating validates our dedication to our 111-year heritage and our heightened responsibility to support important women's issues, serve communities, and position Royal Neighbors for continued growth and development in the 21st century."
According to the A.M. Best report, Royal Neighbors must aggressively manage growing net premium written while sustaining operating gains. In addition, regulatory restrictions and new business costs of the Medicare Supplement line of business must be managed and more balanced in order to meet further expense reduction efforts and overall profitability for the locally-based insurance organization.
"Like all businesses, Royal Neighbors must manage its strategic and tactical initiatives," said Tidwell. "I am excited about our future and our opportunities and I am pleased that A.M. Best agrees. We are confident that our strategic plan to stabilize and revitalize the Society will strengthen our operations and allow us to successfully meet the needs of our membership."
In addition to offering valuable member benefits such as scholarships, disaster aid, and a variety of volunteer opportunities within communities across the nation, Royal Neighbors of America also provides life, annuity, and health insurance products and services to meet the financial needs of today's women and their families.
Headquartered in Rock Island, Royal Neighbors serves more than 232,000 insurance certificateholders, has $2.2 billion of insurance in force, and is licensed to do business in 41 states and the District of Columbia. Its members can participate in a variety of community-based volunteer activities through its 1,200 chapters across the nation.
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