Best’s News & Research Service - December 15, 2017 11:39 AM (EST)
A.M. Best Revises Issuer Credit Rating Outlook to Positive for Bremen Farmers Mutual Insurance Company
- December 15, 2017 11:39 AM (EST)
Oldwick //BestWire// - A.M. Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to positive from stable and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Bremen Farmers Mutual Insurance Company (Bremen) (Bremen, KS). The outlook of the FSR remains stable.
The ratings reflect Bremen’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The positive Long-Term ICR outlook is derived from the company’s stable favorable results in recent years, resulting in the five-year average combined ratio to be in line with the personal property composite. The company’s strong surplus growth, driven by solid underwriting income, has been outpacing premium writings and causing leverage measures to decrease. In addition, the company’s reserves have been consistently redundant, and property lines are naturally shorter tailed in nature. These results are expected to continue, as management continues to adhere to strict underwriting guidelines.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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