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CUMIS General Insurance Assigned BBpi Rtg by S&P

3 August 1998

CUMIS General Insurance Assigned BBpi Rtg by S&P

    NEW YORK--Standard & Poor's CreditWire 8/3/98-- Standard & Poor's today assigned its double-'Bpi' insurer financial strength rating to CUMIS General Insurance Co.
    The company is licensed in 15 states. CUMIS General Insurance's major line of business is private passenger auto liability, and it is a member of CUNA Mutual Group, which is a large insurance group with surplus in excess of $100 million. The company commenced operations in 1961, and the principle state in which it operates is Michigan.
    The following factors were incorporated in the double-'Bpi' rating:

--   Capital adequacy as measured by Standard & Poor's capital
     adequacy model is 286.6%, which is extremely strong;

--   The company has nearly doubled its surplus to $40.6 million in
     1997 from $21.1 million in 1992;

--   The company has experienced cumulative operating losses and has a
     weak current liquidity ratio. This combination is
     uncharacteristic of secure-rated insurers; and

--   Although the company is a member of CUNA Mutual Group, Standard &
     Poor's believes that this relationship is not a significant
     rating factor.

    Ratings denoted with a 'pi' subscript are insurer financial strength ratings based on an analysis of published financial information and additional information in the public domain. The ratings do not reflect in-depth meetings with an insurer's management nor do they incorporate material nonpublic information, and are therefore based on less comprehensive information than ratings without a pi subscript. Pi ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect an insurer's financial security occurs.
    The pi rating process covers U.S insurers to which Standard & Poor's previously assigned quantitative ('q') ratings, and may include information beyond that used to derive the previous quantitative-only ratings. Pi ratings are not modified with 'plus' or 'minus' designations, nor are they subject to potential CreditWatch listings, Standard & Poor's said.
---CreditWire