JANUARY 14, 2020 08:28 AM (EST)
AM Best Revises Outlooks to Stable for Missouri Valley Mutual Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 14, 2020 08:28 AM (EST)
The Credit Ratings (ratings) reflect Missouri Valley’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revised outlooks are based on Missouri Valley’s flat to negative policyholders’ surplus growth in recent years, driven by a deterioration in underwriting results and operating performance from an increased frequency and severity of storm losses.
The rating affirmations reflect Missouri Valley’s strongest level of risk-adjusted capitalization, modest underwriting leverage and adequate five-year operating return measures. These positive factors are partially offset by Missouri Valley’s limited financial flexibility and scale, as well as its geographic concentration in South Dakota, which exposes results to frequent and severe weather-related events.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.