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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 29, 2010 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to "a" from "a-" of Rural Mutual Insurance Company (Rural Mutual) (Madison, WI). The outlook for both ratings has been revised to stable from positive.
The upgrades reflect Rural Mutual's solid risk-adjusted capitalization and continued strong operating earnings. The ratings also recognize Rural Mutual's strong risk management practices and market leadership position as an insurer of farm-related business in Wisconsin.
These positive rating factors are reflective of management's disciplined underwriting and conservative investment strategy. Furthermore, Rural Mutual has experienced strong underwriting income and significant surplus growth over the last few years.
Partially offsetting these positive rating factors are Rural Mutual's property concentration in Wisconsin. With a single state geographic concentration, earnings are exposed to catastrophic losses as well as market and regulatory concerns. However, Rural Mutual's risk management strategies mitigate catastrophe exposure through a sound reinsurance program, which insulates earnings and surplus.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.