MAY 14, 2020 03:36:36 Eastern Daylight Time
AM Best Affirms Credit Ratings of American Family Mutual Insurance Co., S.I., Its Affiliates and American Family Life Ins. Co.
FOR IMMEDIATE RELEASE
OLDWICK - MAY 14, 2020 03:36:36 Eastern Daylight Time
The ratings of American Family reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
American Family’s balance sheet strength assessment is derived from its risk-based capitalization also being at the strongest level, as well as from historically consistent surplus growth and favorable reserving. Operating performance has been driven by consistent investment income, realized capital gains and fee income partially offset by underwriting losses. Underwriting results have improved year-over-year and are expected to return to more favorable historical norms, as the group recognizes improvements from rate changes and expense management. In addition, the organization’s growing geographic, product and distribution mix further support the business profile assessment following the merger with Main Street America Group and acquisition of Connect Auto & Home (formerly Ameriprise Auto & Home).
The ratings of AFLIC reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect support the company receives from its parent, American Family Insurance Mutual Holding Company.
AFLIC paid $570 million in dividends to American Family in 2018 and 2019, but its balance sheet remained in line with AM Best’s assessment. Future dividend activity may impact AM Best’s assessment negatively. AFLIC has a long-term trend of steady, positive earnings.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with a stable outlook for the following affiliates of American Family Mutual Insurance Company, S.I.:
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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.