AM Best Upgrades Issuer Credit Ratings of Federated Mutual Group’s Members; Affirms Credit Ratings of Affiliates

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa” (Superior) from “aa-” (Superior) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) of Federated Mutual Insurance Company (Federated Mutual) and its pooled subsidiaries, Federated Service Insurance Company, Federated Reserve Insurance Company, and Granite Re, Inc. (Oklahoma City, OK). These companies are collectively referred to as Federated Mutual Group (Federated) and are domiciled in Owatonna, MN. The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook of the FSR is stable. Additionally, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Federated Life Insurance Company (Federated Life). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Federated Specialty Insurance Company (Federated Specialty) (Dover, DE). The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Owatonna, MN unless otherwise specified.

The ratings of Federated reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICR reflects a revision of Federated Mutual’s operating performance assessment to strong from adequate based on the organization’s solid and consistent financial results achieved through a methodical and disciplined approach to underwriting. This careful and strategic focus has not only ensured the stability of the group but also has paved the way for profitable growth over time. Furthermore, the key operating metrics clearly illustrate a strong performance across various segments of the business. These metrics provide compelling evidence that the positive trends seen in recent years are not temporary but are expected to continue in the near to medium term. Strong underwriting profitability is augmented further by sizeable and growing investment income. Federated Mutual’s consistent performance reinforces confidence in the effectiveness of the company’s underwriting practices and its overall business strategy.

Federated Mutual’s balance sheet assessment is well-supported by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, Federated Mutual maintains favorable levels of liquidity, modest underwriting leverage and low dependence on reinsurance, which further solidifies its balance sheet strength. Federated Mutual’s strong market position and geographic and product diversification support earnings generation and surplus expansion.

The ratings of Federated Life reflect the company’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM. Federated Life has been an important part of the operations and offers comprehensive protection solutions to small commercial clients. However, Federated Life remains a relatively modest contributor to the organization’s overall revenue and earnings.

The ratings of Federated Specialty reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. Federated Specialty’s business growth has been behind the initial projections, but management is committed to taking advantage of specialty market opportunities and adding diversification to the organization.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.