MARCH 26, 2019 12:25 PM (EDT)
AM Best Assigns Credit Ratings to Midwest Insurance Group Members
|Edin Imsirovic |
Senior Financial Analyst
+1 908 439 2200, ext. 5740
Jacqalene Lentz, CPA
+1 908 439 2200, ext. 5762
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 26, 2019 12:25 PM (EDT)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of “a-” to Midwest Insurance Company (Springfield, IL) and its affiliate, West River Insurance Company (Sioux Falls, SD), collectively known as Midwest Insurance Group (Midwest). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Midwest’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Midwest’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as strongest, and AM Best expects it to remain at a similar level in future years. The balance sheet strength assessment also considers the company’s favorable reserve development over the past five years, further distancing itself from historical adverse reserve developments related to its California workers’ compensation book of business.
Midwest has generated an adequate level of operating performance, supported by favorable underwriting income and moderate investment returns in recent years. Underwriting results have benefited from favorable reserve development trends on prior accident years. Midwest is a direct writer of first dollar guaranteed cost coverage with approximately 20 state licenses. As a monoline workers’ compensation insurer, its limited business profile leaves it susceptible to competitive pressures in certain jurisdictions, as well as potential legislative, regulatory or judicial changes. This concern is mitigated partly by the group’s strategy to ensure responsiveness to its local agency base. Risk-management capabilities are considered appropriate for the risk profile of the company.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.