AM Best Affirms Credit Ratings of Core Members of Ohio Mutual Insurance Group; Assigns Credit Ratings to United Mutual Insurance Company
- October 02, 2024 12:42 PM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of the core members of Ohio Mutual Insurance Group (OMIG). The outlook of the FSR is stable, while the outlook of the Long-Term ICRs is negative. Concurrently, AM Best has assigned an FSR of A (Excellent) and a Long-Term ICR of “a+” (Excellent) to United Mutual Insurance Company (United). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is negative. United is a newly acquired subsidiary of Ohio Mutual Insurance Company. These companies are collectively referred to as Ohio Mutual Insurance Group and domiciled in (Bucyrus, OH). See below for detailed listing of these companies and Credit Ratings (ratings).
The ratings reflect OMIG’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The negative outlooks of OMIG’s Long-Term ICRs consider the group’s deteriorating underwriting performance, which has produced underwriting losses in each of the past two and a half years. The group’s underwriting results were driven primarily by an abnormal level of catastrophe losses in its core states of operation, along with an increased severity of loss due to rising inflation levels. Abnormal weather activity included the first and second-largest net catastrophe events in OMIG’s history. Results through 2024 have shown some improvements, and when combined with year-end projections are expected to continue to align with its strong private passenger auto and homeowner peers.
OMIG’s management is addressing the volatility through rate, inflation adjustments, aggressive reunderwriting its book of business, non-renewing particular coverages, in-depth inspections and requiring higher deductibles. AM Best expects that these actions will allow OMIG to improve upon its current level of performance and return to historical norms.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with a stable outlook for the FSR and negative outlooks for the Long-Term ICRs for the following members of the Ohio Mutual Insurance Group:
- Casco Indemnity Company
- Ohio Mutual Insurance Company
- United Ohio Insurance Company
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.