AM Best Revises Outlooks to Positive for Trustmark Group, Inc. and Its Subsidiar… – Press Release

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AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Trustmark Insurance Company (Lake Forest, IL) and Trustmark Life Insurance Company of New York (Albany, NY) (collectively referred to as Trustmark Group), as well as Trustmark Life Insurance Company (Lake Forest, IL). Concurrently, AM Best also has revised the outlook to positive from stable and affirmed the Long-Term ICR of “bbb-” (Good) of Trustmark Group, Inc. (TGI) (Lake Forest, IL), and the Long-Term Issue Credit Rating of “bb” (Fair) on the $75 million floating rate trust preferred securities ($39 million outstanding), due 2035, issued by Trustmark Finance Trust I.

These Credit Ratings (ratings) reflect Trustmark Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The positive outlooks reflect Trustmark Group maintaining the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its continued trend of moderating investment risks. Trustmark Group has shown incremental strengthening of its risk-adjusted capitalization over the past few years, primarily driven by strong operating results. Trustmark Group actively manages its statutory capital ensuring appropriate levels are maintained within each insurance entity and that any current and future capital needs are deployed by the holding company, as needed.

Trustmark Group maintains a conservative investment portfolio comprised of high-quality fixed income securities; however, the portfolio contains an elevated amount of higher-risk assets allocated to mortgage loans and equities. During 2021, Trustmark Group has taken steps to decrease its high-risk exposure by reducing the portfolio allocation…

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