AM Best Upgrades Issuer Credit Rating for Farmers Mutual Insurance Company of Michigan

Written by Luck Wilson on October 20, 2021

OLDWICK, N.J.–(BUSINESS WIRE)–AM Greatest has upgraded the Lengthy-Time period Issuer Credit score Ranking (Lengthy-Time period ICR) to “b+” (Marginal) from “b” (Marginal) and affirmed the Monetary Power Ranking (FSR) of C++ (Marginal) of Farmers Mutual Insurance coverage Firm of Michigan (FMIC) (Coldwater, MI). The outlook of the Credit score Rankings (scores) is steady.

The scores mirror FMIC’s stability sheet energy, which AM Greatest assesses as enough, in addition to its marginal working efficiency, very restricted enterprise profile and marginal enterprise threat administration.

The Lengthy-Time period ICR improve displays a pattern of improved working efficiency metrics in contrast with prior intervals, and a discount in underwriting efficiency volatility relative to historic ranges.

FMIC’s stability sheet energy is assessed as enough because of robust risk-adjusted capitalization, elevated reinsurance dependence metrics and restricted monetary flexibility and scale of operations. FMIC’s enterprise profile is assessed as very restricted because of its enterprise focus in Michigan and extremely aggressive market with low boundaries to entry for rivals in its main traces of enterprise. FMIC’s ERM is assessed as marginal because of an evolving threat administration framework.

This press launch pertains to Credit score Rankings which were printed on AM Greatest’s web site. For all score info referring to the discharge and pertinent disclosures, together with particulars of the workplace liable for issuing every of the person scores referenced on this launch, please see AM Greatest’s Recent Rating Activity internet web page. For added info relating to the use and limitations of Credit score Ranking opinions, please view Guide to Best’s Credit Ratings. For info on the correct use of Greatest’s Credit score Rankings, Greatest’s Preliminary Credit score Assessments and AM Greatest press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Greatest is a worldwide credit standing company, information writer and information analytics supplier specializing within the insurance coverage business. Headquartered in the USA, the corporate does enterprise in over 100 nations with regional workplaces in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra info, go to www.ambest.com.

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