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FOR IMMEDIATE RELEASE
OLDWICK - MAY 23, 2024 01:42 PM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Midwest Insurance Company (Springfield, IL), West River Insurance Company (Sioux Falls, SD) and Brickyard Insurance Company (Fort Wayne, IN), collectively known as Midwest Insurance Group (Midwest).
The Credit Ratings (ratings) reflect Midwest’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The positive outlook of the Long-Term ICRs reflects Midwest’s consistent trend in operating gains, low net leverage and continued favorable reserve development. Midwest’s operating performance compares very favorably with the workers’ compensation composite on a five-year and 10-year basis, with strong underwriting performance and steady investment income contributing to strong growth in surplus and strongest risk-adjusted capitalization ratios. Additionally, return on revenue metrics and return on equity have outpaced the composite over the past five years.
Midwest has a limited business profile as a monoline workers’ compensation insurer operating in approximately 20 states contracting with small- to medium-sized agency partners. The ERM framework and capabilities are evaluated as appropriate for the company’s 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 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.