A.M. Best Revises Outlook to Positive for RAM Mutual Insurance Company

OLDWICK, N.J.--()--A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of RAM Mutual Insurance Company (RAM) (Esko, Minnesota).

The revised outlook reflects RAM’s improved operating results which have strengthened its capital position over the past several years. The outlook change further reflects management’s improved enterprise risk management capabilities, which are expected to benefit the company’s long-term profitability through sustained favorable operating results despite the impact from significant weather-related events and market pressures.

The affirmation reflects the favorable turnaround in RAM’s underwriting results due to several factors, including improved rate adequacy, underwriting initiatives and a more responsive reinsurance program. In addition, the affirmation reflects RAM’s conservative business model and close relationships with local “township mutuals” that help to provide the company with a unique, strategic advantage in the Minnesota market.

Partially offsetting these positive factors are the company’s property-oriented focus and geographic concentration of risk in Minnesota, making its operating results susceptible to frequent severe localized weather-related events, as well as regulatory and judicial concerns.

Positive rating action is possible if the company’s favorable underwriting and operating performance trends are sustained while maintaining adequate risk-adjusted capitalization.

Negative rating action could result if there is significant deterioration in underwriting or operating results or risk-adjusted capitalization due to weather-related events or market pressures.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Maurice Thomas, 908-439-2200, 5794
Senior Financial Analyst
maurice.thomas@ambest.com
or
Rick Decker, 908-439-2200, 5423
Assistant Vice President
rick.decker@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Maurice Thomas, 908-439-2200, 5794
Senior Financial Analyst
maurice.thomas@ambest.com
or
Rick Decker, 908-439-2200, 5423
Assistant Vice President
rick.decker@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com