OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of C++ (Marginal) and the Long-Term Issuer Credit Rating of “b” of Farmers Mutual Insurance Company of Michigan (FMIBC) (Coldwater, MI).
The ratings reflect FMIBC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, very limited business profile and marginal enterprise risk management (ERM).
The revised outlooks reflect improved operating results and expansion of key ERM capabilities, such as policyholders’ surplus that has stabilized at a level meaningfully above the state-mandated $1 million. Some uncertainty exists in FMIBC’s prospective operating performance due to improved results in 2017, which contrast sharply with historical patterns observed as recently as 2016. The ratings are supported by risk-adjusted capitalization that has strengthened since 2015, the year it merged with another Michigan insurance carrier.
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