MARCH 09, 2023 04:07 PM (EST)
AM Best Withdraws Credit Ratings of Farmers and Merchants Mutual Fire Insurance Company
| Phinthip Dezuzio Senior Financial Analyst +1 908 439 2200, ext. 5751 phinthip.dezuzio@ambest.com Joseph Burtone Director +1 908 439 2200, ext. 5125 joseph.burtone@ambest.com | Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 christopher.sharkey@ambest.com Al Slavin Senior Public Relations Specialist +1 908 439 2200, ext. 5098 al.slavin@ambest.com |
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 09, 2023 04:07 PM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Farmers and Merchants Mutual Fire Insurance Company (Farmers and Merchants) (Calumet, MI). 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 Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.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 Farmers and Merchants’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited profile and appropriate enterprise risk management.
The stable outlooks reflect AM Best’s expectation that Farmers and Merchants will continue to maintain capitalization metrics in line with the very strong balance sheet strength assessment. Although underwriting results have been adverse, with the exception of 2022, the company has been able to increase its policyholder surplus despite persistent underwriting losses. In 2022, the company was impacted by increased weather-related events and stock market volatility resulting in unrealized capital losses.
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.