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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 03, 2021 11:55 AM (EST)
AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb” of MGA Insurance Company, Inc. (MGA) (Dallas, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating upgrades reflect the recent completion of MGA’s acquisition by State Farm Mutual Automobile Insurance Company (State Farm Mutual). Following the completion of this transaction, MGA has become part of a larger, more-diversified organization with excellent risk-adjusted capitalization, a strong market reputation and a nationwide geographic footprint.
MGA’s ratings reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect lift, as defined within Best’s Credit Rating Methodology (BCRM), from its parent, State Farm Mutual.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.