AM Best Information Services

AUGUST 03, 2022 09:21 AM (EDT)

AM Best Revises Outlooks to Negative for Germantown Mutual Insurance Company

 Lauren Magro
Financial Analyst
+1 908 439 2200, ext. 5181

Joseph Burtone
+1 908 439 2200, ext. 5125
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204


OLDWICK - AUGUST 03, 2022 09:21 AM (EDT)
AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) of Germantown Mutual Insurance Company (Germantown Mutual) (Germantown, WI).

The Credit Ratings (ratings) reflect Germantown Mutual’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks reflect Germantown Mutual’s operating performance results, which in recent years has shown some deterioration. Unfavorable results have been driven primarily by catastrophe events and secondary perils, mainly wind and hail storms in the company’s dual-state operating territory. Weather-related events continue to impact the Germantown Mutual’s results and it likely will report a second-straight year with a combined ratio above break-even. Management is taking aggressive actions to mitigate volatility through its conservative approach to rates, inflation guard increases, deductibles and the spread of concentration of risk further into Utah. In addition, management has a proven track record of conservative reserving practices, which may help overall results when the weather-related losses are fully developed and excess reserves are released.

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.

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AMB# Company Name
000414 Germantown Mutual Insurance Company