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.
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