Shelter Reinsurance Financial Strength Upgraded to "A"

A (Excellent) financial strength rating affirmed for the Shelter Insurance® group of companies, Shelter Life Insurance Company and Haulers Insurance Company

[10 June 2010, Columbia, Mo.] Shelter Reinsurance Company today announced that A.M. Best Company upgraded its financial strength rating (FSR) to A (Excellent) from A- (Excellent) and issuer credit rating (ICR) to A from A-.

Shelter Reinsurance Company is a wholly-owned subsidiary of Shelter Mutual Insurance Company.  Founded in 1986, Shelter Reinsurance specializes in property reinsurance outside Shelter Mutual's operating territory.

In upgrading Shelter Reinsurance to an A, A.M. Best recognized its improved capitalization and favorable operating performance.

Shelter Re provides a unique diversification strategy that compliments its parent, Shelter Mutual’s core personal lines book of business through reinsurance, according to A.M. Best.  As a member of the Shelter group of companies, Shelter Re has access to extensive personal lines experience including claims, underwriting and legal expertise. Shelter Re has been successful in the domestic marketplace in recent years leveraging the mutual to mutual approach.


A.M. Best's rating rationale stated that the rating outlook recognizes the explicit and implicit support provided by Shelter Mutual as reflected in its strong risk-adjusted capitalization, technology innovation and experienced management team. Partial offsets include Shelter Re’s exposure to catastrophic events worldwide, severe weather-related losses and global competition from larger, more established players.

The group’s affirmations are reflective of its moderate underwriting leverage, management's conservative reserving philosophy, well established regional market presence and consistent net investment income. A partially offsetting factor is the group’s variable operating performance mainly due to its inherent exposure to frequent and severe weather-related events.

Shelter Insurance Companies

A.M. Best also has affirmed the FSR of A (Excellent) and ICR of “a+” of the group of Shelter Insurance Companies and its members: Shelter Mutual Insurance Company and Shelter General Insurance Company.

Shelter Life Insurance Company

Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Shelter Life Insurance Company (Shelter Life), a wholly owned subsidiary of Shelter Mutual Insurance Company (Shelter Mutual). The outlook for all ratings is stable.

The ratings of Shelter Life reflect its role as a strategic subsidiary of Shelter Mutual, its strong risk-adjusted capitalization, consistently positive operating performance and its focus on the highly creditworthy ordinary life line of business distributed through captive agents.  Offsetting these rating factors is the geographic concentration of Shelter Life’s in force business and its limited market profile.

Haulers Insurance Company, Inc.

Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Haulers Insurance Company, Inc.   Haulers, a predominantly personal lines insurer based in Columbia, Tenn., is wholly owned by Shelter Mutual Insurance.

Haulers’ ratings acknowledge its solid risk-adjusted capitalization, favorable operating performance and conservative underwriting leverage measures.

Shelter Insurance® is a group of companies with two direct personal lines property and casualty companies, a reinsurance company, a life and annuity insurer, and a thrift bank. Shelter offers auto, home, life, farm and business insurance services to customers in 14 states via a network of 3,100 local insurance agents and claims representatives. The firm’s Home Office is at Columbia, Mo.


For more information about Shelter, visit our website at:

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.