Best's News


BEST'S CREDIT RATING ACTION

Best’s News & Research Service - May 05, 2023 01:15 PM (EDT)

AM Best Affirms Credit Ratings of Agrinational Insurance Company

  • May 05, 2023 01:15 PM (EDT)
    print icon

Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Agrinational Insurance Company (Agrinational) (headquartered in Colchester, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Agrinational’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The company also receives rating enhancement provided by its ultimate parent, Archer Daniels Midland Company (ADM) [NYSE: ADM].

Agrinational’s balance sheet strength is assessed as strong, and is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative investment strategy, and its afforded financial flexibility and support from ADM. Agrinational’s adequate operating performance reflects improved combined and operating ratios resulting from the benefits of the company’s strategy in focusing on its core business while exiting from restrictive and non-core exposures. Agrinational has a low cost-expense structure and a keen underwriting focus with an emphasis on risk management controls, which are well-integrated with those of its parent. Agrinational provides a variety of coverages with a focus on commercial property and marine coverages, workers’ compensation, general liability, employee benefits, and a medical expense cost containment program for ADM.

The ratings also reflect rating enhancement provided to Agrinational by ADM, one of the world’s largest agricultural processors and food ingredient providers. Agrinational holds a strategic position within ADM, serving a critical role in meeting certain global insurance requirements and providing risk management services to ADM and its subsidiaries. ADM in turn provides implicit and explicit support to Agrinational.

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.



United States Press Release Vermont A.M. Best Rating Services, Inc. Insurance Best's Credit Rating Action


Latest News

More from Best’s News


Trending

AM Best TV

More Related Company News

To Submit News go to - https://www.ambest.com/bestweek/submitnews.html