Best’s News & Research Service - February 17, 2023 10:16 AM (EST)
AM Best Revises Issuer Credit Rating Outlook to Positive for Mountain West Farm Bureau Mutual Insurance Company
- February 17, 2023 10:16 AM (EST)
Oldwick //BestWire// - AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Mountain West Farm Bureau Mutual Insurance Company (Mountain West) (Laramie, WY). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Mountain West’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revision of the Long-Term ICR outlook to positive is reflective of the improved operating performance over the past three years. This improvement is evidenced by operating performance metrics that are approaching comparability with companies in the adequate level of operating performance rather than the company’s current marginal assessment. Mountain West’s operating performance has benefited from the stabilization of underwriting results due to multiple initiatives undertaken by management, including rate increases, exposure reductions in high-risk areas and an improved reinsurance program.
Mountain West’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), a relatively conservative investment portfolio, adequate liquidity measures and a comprehensive reinsurance program. Mountain West’s limited business profile reflects the company’s moderate geographic concentration, which has resulted in volatility in certain years. AM Best considers Mountain West’s ERM program to be appropriate for its size and scale of operations.
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.