AM Best Withdraws Credit Ratings of Associated Mutual Insurance Cooperative

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Associated Mutual Insurance Cooperative (Associated Mutual) (Woodridge, NY). The outlook of these Credit Ratings (rating) is stable. Concurrently, AM Best has withdrawn these Credit Ratings (ratings) as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Associated Mutual’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The stable outlooks reflect Associated Mutual’s risk-adjusted capitalization, which is expected to remain at the adequate level over the near term, as measured by Best’s Capital Adequacy Ratio (BCAR), as the company continues to focus on improving its loss reserve development patterns and refining its risk management capabilities to drive stabilization in key balance sheet strength and operating performance metrics. While operating results were still volatile through year-end 2024, there was improvement from the previous year and policyholders’ surplus grew by 4.7%. At the same time, the company’s high dependence on reinsurance and inadequate level of reinsurance protection above its 1 in 100-year modeled event continues to pose a substantial risk, particularly considering the geographic concentration of business predominantly in downstate New York, including New York City, Long Island and Westchester County. Management is making concerted efforts to shift its risk exposures more toward the upstate region of New York state to reduce this risk, though the effectiveness of these efforts remains uncertain as reflected by the marginal ERM assessment.

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