Moreover, in view of the fact that Company is significantly larger than WCMI
and will survive the merger with WCMI
, the management structure of the proposed merged company, the activities of the merging companies and the proposed merged company, and the other aspects of this case, the Board believes the merger of WCMI
and Company would not disqualify Company from calculating compliance with the revenue test in conformance with the annualized treatment described in this order.
The rating actions reflect the explicit support provided by CIC's parent, Wisconsin County Mutual Insurance Corporation (WCMI) (Madison, WI), which includes the implementation of an internal reinsurance agreement earlier this year as well as the quota sharing of all prior liabilities to WCMI.
Nonetheless, following the inception of CIC's 100% internal reinsurance arrangement with WCMI, the company's results will generally reflect that of its investment returns as there will be no net underwriting commitments.