OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of RAM Mutual Insurance Company (RAM) (Esko, MN). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The rating upgrades reflect RAM’s strengthened risk-adjusted capitalization, favorable operating performance and well-established local market presence. The capital position has benefited from a strong operating performance trend derived from the company’s business model and solid agency relationships. In addition, underwriting leverage measures have remained at a level below the composite average. The company’s strong profitability has been achieved from management’s underwriting and pricing discipline, strengthened reinsurance program and active enterprise risk management framework. RAM benefits from a strategic marketing advantage in the rural areas of Minnesota. This advantage includes its partnerships with local township mutual companies by providing wind and liability packaged policies to this niche market. RAM also offers complementary insurance products to these market insureds that strengthens its agency relationships and enhances its local market presence. These positive attributes are offset partially by RAM’s property-oriented focus and geographic concentration in Minnesota. As a result, the company’s operating results are susceptible to frequent and severe localized weather-related events, as well as regulatory and judicial concerns. However, these factors are mitigated effectively by the company’s comprehensive reinsurance program, which significantly reduces the impact of a major catastrophe event on its surplus.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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