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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 17, 2015 11:15 AM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to "a-" from "bbb" of Michigan Millers Mutual Insurance Company (Michigan Millers) (Lansing, MI). The outlook assigned to both ratings is stable. These rating actions follow regulatory approvals of an affiliation agreement between Michigan Millers and Western National Mutual Insurance Company (Western National) (Edina, MN).
The affiliation is expected to provide the companies with increased diversification through additional spread of risk and geographic reach, while providing Michigan Millers access to Western National's independent agency base. A.M. Best expects that Michigan Millers will continue to operate as a separate entity writing commercial lines following its recent decision to exit the personal lines market.
With the affiliation, Michigan Millers is part of a larger, more diversified insurance group, which should result in improved economies of scale for the company. In addition, a number of implicit and explicit support mechanisms are being implemented by Western National, which should benefit Michigan Millers on a going forward basis.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.