OCTOBER 15, 2020 09:06 AM (EDT)

AM Best Revises Outlooks to Positive for Members of AmFed Insurance Group


CONTACTS:
 Robert Valenta
Senior Financial Analyst
+1 908 439 2200, ext. 5291
robert.valenta@ambest.com

Raymond Thomson, CPCU, ARe, ARM
Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 15, 2020 09:06 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of AmFed National Insurance Company and its 100% reinsured subsidiaries, AmFed Casualty Insurance Company and AmFed Advantage Insurance Company, collectively referred to as AmFed Insurance Group (AmFed). All companies are domiciled in Ridgeland, MS.

The ratings reflect AmFed’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The positive outlooks reflect AmFed’s favorable operating performance in recent years driven by the strength of its existing books of business and consistently favorable reserve development. These trends have been consistent since AmFed’s acquisition by Builders and Contractors Associations of Mississippi Self Insurer’s Trust, whose self-insurance trust liabilities were transferred to AmFed effective July 1, 2014. The expectation is for a continued trend of operating performance metrics, which outperform the industry composite, while maintaining very strong balance sheet strength, supported by risk-adjusted capitalization assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

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.


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