OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “aa-” from “a+” of the following members of Western National Insurance Pool (Western National): Western National Mutual Insurance Company (Edina, MN), Western National Assurance Company (Minneapolis, MN), Western Home Insurance Company (Edina, MN), Pioneer Specialty Insurance Company (Edina, MN), Umialik Insurance Company (Anchorage, AK) and Arizona Automobile Insurance Company (Phoenix, AZ). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
Concurrently, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” from “a” of American Freedom Insurance Company (Arlington Heights, IL) and the FSR to A+ (Superior) from B++ (Good) and Long-Term ICR to “aa-” from “bbb+” of Nevada General Insurance Company (Las Vegas, NV), the remaining members of the pool. The outlook of American Freedom Insurance Company’s ratings remains stable, while the outlook of Nevada General Insurance Company’s ratings has been revised to stable from positive.
A.M. Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Michigan Millers Mutual Insurance Company (Michigan Millers) (Lansing MI). The outlook of these ratings is stable.
The ratings and outlooks for Western National reflect its excellent level of risk-adjusted capitalization, strong operating performance for an extended period and its sound business profile, as the group underwrites variety of personal and commercial lines products in 20 states. These positive rating factors are partially offset by Western National’s significant exposure to frequent and severe weather events as well as increased competitive, market and regulatory pressures. The ratings and outlooks also recognize improving trends in operating performance and risk-adjusted capitalization levels. A.M. Best anticipates that these trends to continue as management adheres to conservative operating strategies, taking into consideration Western National’s successful track record of solid risk and exposure management.
The ratings for Michigan Millers recognize its solid risk-adjusted capitalization and improving operating performance following its affiliation with Western National in 2015. The ratings also reflect the implicit and explicit support provided by Western National. These positive rating factors are partially offset by Michigan Millers’ limited business profile, product offering and geographic spread, which expose the company’s results to weather-related events and potential changes occurring in the economic, competitive and regulatory environments.
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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