| Josie Novak, FRM, CPCU Financial Analyst +1 908 439 2200, ext. 5242 josie.novak@ambest.com Janet Hernandez Senior Financial Analyst +1 908 439 2200, ext. 5432 janet.hernandez@ambest.com | Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 christopher.sharkey@ambest.com Al Slavin Communications Specialist +1 908 439 2200, ext. 5098 al.slavin@ambest.com |
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 17, 2022 11:34 AM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Center Mutual Insurance Company (Center Mutual) (Rugby, ND). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Center Mutual’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings affirmation reflects Center Mutual’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), favorable underwriting leverage measures and conservative loss reserving practices, as evidenced by historically favorable reserve development. Center Mutual’s operating performance has been profitable in recent years; however, due to weather events through the third quarter, the company reported a rare operating loss. Typically, the company’s results improve during the fourth quarter. The majority of Center Mutual’s business is produced in North Dakota, which creates susceptibility to severe weather-related events.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.