Press Release - SEPTEMBER 17, 2018

A.M. Best Revises Outlooks to Positive for Northern Mutual Insurance Company (MI)


CONTACTS:
 Christopher Jackson
Financial Analyst
+1 908 439 2200, ext. 5721
christopher.jackson@ambest.com

Brian O’Larte
Director
+1 908 439 2200, ext. 5138
brian.o’larte@ambest.com

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

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 17, 2018
A.M. 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 (Long-Term ICR) of “a-” of Northern Mutual Insurance Company (MI) (NMIC) (Hancock, MI).

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

The revision in the outlooks reflects the favorable trend in NMIC’s underwriting and overall operating performance over the current five-year period, which continues to strengthen its policyholders’ surplus. The company’s improved earnings are attributable to actions taken by management, which includes rate increases, expense reassessment and technology improvements. The company’s overall surplus has continued to improve over the past five years and has strengthened its overall balance sheet assessment. The business profile is limited, primarily due to its geographic and its product concentration as a mainly personal property insurer in Michigan.

The rating affirmations reflect NMIC’s risk-adjusted capitalization being at the strongest level, the management team’s experience in their niche and focus on underwriting fundamentals. These factors are offset partially by the current market competitive conditions within the personal property market in which NMIC operates.

Positive rating movement may be considered following continued improvement in the company’s operating performance over the near term. Negative credit rating action may occur if NMIC’s results deteriorate significantly or if there is a weakening in its risk-adjusted capitalization.

This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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AMB# Company Name
003611 Northern Mutual Insurance Company