JANUARY 13, 2022 11:19 AM (EST)
AM Best Revises Outlooks to Stable for Mountain West Farm Bureau Mutual Insurance Company
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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 13, 2022 11:19 AM (EST)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Mountain West Farm Bureau Mutual Insurance Company (Mountain West) (Laramie, WY).
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 revised outlooks reflect the demonstrated improvement in Mountain West’s underwriting performance and subsequent stabilization of capital and underwriting leverage ratios. Actions taken by management in recent years include redefining property zones, price adequacy initiatives, adjusting deductibles, and increased usage of data analytics, as well as reinsurance program revisions. These efforts, along with the issuance of a surplus note in 2020, have driven a considerable increase in capital. Accordingly, the strong balance sheet strength assessment reflects the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and consistently favorable reserve development, partially offset by significant surplus fluctuations driven by volatile underwriting results over the long term.
Although there has been improvement in most recent years, the marginal operating performance assessment reflects Mountain West’s longer-term history of volatility that compares unfavorably with composite norms. Underwriting losses have been driven by Mountain West’s limited business profile reflective of its moderate concentration of risk and exposure to weather-related catastrophes. The company’s ERM program, which has become increasingly imbedded throughout the organization, now more closely aligns with its risk profile.
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 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.