Press Release - FEBRUARY 25, 2016

A.M. Best Revises Outlook to Positive for RAM Mutual Insurance Company


CONTACTS:
 Maurice Thomas
Senior Financial Analyst
(908) 439-2200, ext. 5794
maurice.thomas@ambest.com

Rick Decker
Assistant Vice President
(908) 439-2200, ext. 5423
rick.decker@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - FEBRUARY 25, 2016
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of RAM Mutual Insurance Company (RAM) (Esko, Minnesota).

The revised outlook reflects RAM’s improved operating results which have strengthened its capital position over the past several years. The outlook change further reflects management’s improved enterprise risk management capabilities, which are expected to benefit the company’s long-term profitability through sustained favorable operating results despite the impact from significant weather-related events and market pressures.

The affirmation reflects the favorable turnaround in RAM’s underwriting results due to several factors, including improved rate adequacy, underwriting initiatives and a more responsive reinsurance program. In addition, the affirmation reflects RAM’s conservative business model and close relationships with local “township mutuals” that help to provide the company with a unique, strategic advantage in the Minnesota market.

Partially offsetting these positive factors are the company’s property-oriented focus and geographic concentration of risk in Minnesota, making its operating results susceptible to frequent severe localized weather-related events, as well as regulatory and judicial concerns.

Positive rating action is possible if the company’s favorable underwriting and operating performance trends are sustained while maintaining adequate risk-adjusted capitalization.

Negative rating action could result if there is significant deterioration in underwriting or operating results or risk-adjusted capitalization due to weather-related events or market pressures.

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.


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AMB# Company Name
004814 RAM Mutual Insurance Company