Best’s News & Research Service - August 22, 2018 11:57 AM (EDT)
A.M. Best Revises Outlooks to Stable for Farmers Mutual Insurance Company of Michigan
- August 22, 2018 11:57 AM (EDT)
Oldwick //BestWire// - A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of C++ (Marginal) and the Long-Term Issuer Credit Rating of “b” of Farmers Mutual Insurance Company of Michigan (FMIBC) (Coldwater, MI).
The ratings reflect FMIBC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, very limited business profile and marginal enterprise risk management (ERM).
The revised outlooks reflect improved operating results and expansion of key ERM capabilities, such as policyholders’ surplus that has stabilized at a level meaningfully above the state-mandated $1 million. Some uncertainty exists in FMIBC’s prospective operating performance due to improved results in 2017, which contrast sharply with historical patterns observed as recently as 2016. The ratings are supported by risk-adjusted capitalization that has strengthened since 2015, the year it merged with another Michigan insurance carrier.
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.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.