Ratings firm downgrades Catholic Knights - The Business Journal of Milwaukee:

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Catholic Knights, like other suffered investment lossesin 2008. Ratings firm A.M. Best downgradedr the policyholder and investment ratingsd onthe Milwaukee-based society for Roma n Catholics. The Oldwick, N.J., credit ratingh organization reducedCatholic Knights’ ratings by one but they remain at a “good” level, said assistanty vice president Raj Shah. A.M. Best downgrades Catholic Knights’ financial strength ratinvg to B+ from B++ and the issuer credity ratingto “bbb-” from “bbb.” The outlool for both ratings is stable. “Ig was all about the balance sheet and the balanc e sheet was weak because of investment Shah said.
The more meaningful rating for Catholivc Knights and prospective buyers of its insurance is the financiaplstrength rating. O’Toole takes solacd in the fact that his sales staff can still boast that the ratingsw remained stable despitethe downgrade. “To have a secure and stablr rating in this environment is quitea O’Toole said. Because the fraternal benefitzs society is not issuing any debtfor now, the creditf rating downgrade won’t impact any of the society’s businesse dealings. Catholic Knights postef a net lossof $7.2 millionb in 2008, compared with net income of $9.3 millio n in 2007. Revenue exceeded $100 million for the firsy time ever, at $104.
5 million, compareds with $88.2 million in 2007, O’Toole Assets grew to $833.7 millionn from $817.6 million in 2007. Net cash from investmentws was anegative $9.8 million in 2008 compared with a negativs $12 million in 2007. The policyholders a key measureof insurers’ financiapl performance, declined by $15.6 million, to $36.3 million. O’Toole, who becamew president of Catholic Knights inJanuary 2007, said he sought ratings from A.M. Best becausr he values the agency’s guidance. Catholic Knightxs had dropped A.M. Best as its ratings agency in 2003. A.M.
Best issuedx ratings on Catholic Knights in Decemberr 2008and then, due to investmentf losses, decided to update them before the regularl scheduled review, Shah said. The ratinf actions, announced last week, reflect the ’s significant declined in its unassigned funds, or the net value of the in the past year due toinvestment A.M. Best said. That figure was $36.3 million at year-end 2008 compared with $51.
9 million a year