A.M. Best Revises Outlooks to Stable for Associated Mutual Insurance Cooperative

OLDWICK, N.J.--()--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Associated Mutual Insurance Cooperative (Associated Mutual) (Woodridge, NY).

The Credit Ratings (ratings) reflect Associated Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks also reflect Associated Mutual’s improved operating return measures such as total and pre-tax returns on revenue and equity, and underwriting and operating performance since 2015. These rating factors have been driven primarily by new management initiatives including diversification of the company’s product lines, implementation of a comprehensive reinsurance program expected to reduce loss ratio volatility, and targeted improvement of loss adjustment expenses. As a result of these initiatives, the company’s risk-adjusted capitalization has improved since 2015. These favorable rating attributes are offset to some extent by the company’s limited financial flexibility and scale of operations.

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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Christopher Jackson, +1 908 439 2200, ext. 5721
Financial Analyst
christopher.jackson@ambest.com
or
Brian O’Larte, +1 908 439 2200, ext. 5138
Director
brian.o'larte@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Christopher Jackson, +1 908 439 2200, ext. 5721
Financial Analyst
christopher.jackson@ambest.com
or
Brian O’Larte, +1 908 439 2200, ext. 5138
Director
brian.o'larte@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com