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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 11, 2021 03:06 PM (EST)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of IMT Insurance Company and its affiliate, Wadena Insurance Company. These companies are domiciled in West Des Moines, IA and are collectively referred to as IMT Insurance Companies (IMT).
The ratings reflect IMT’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The stable outlooks reflect actions taken by the group to smooth operating performance and overall balance sheet strength in recent years. These actions include rate increases, refined risk selection, active agency management, reserve strengthening and refinement in the reserve process to capture more recent claims trends. Overall, IMT has improved operating results steadily and reported more consistently favorable overall loss reserve development. Improvement was recorded despite IMT suffering the largest catastrophe in group history in the form of the Iowa Derecho in 2020. Reflective of the sustained improvement and the expectation that prospective results will continue to benefit from corrective initiatives, AM Best believes IMT’s overall balance sheet strength and operating performance are assessed appropriately.
The neutral business profile reflects the group’s offering of various products in the Midwest where a substantial amount of direct premium written is generated in Iowa. The geographic and product distribution exposes the group to storm losses, which are mitigated partially by comprehensive reinsurance structures. AM Best considers the formal ERM program, which includes documented risks, mitigation strategies and stress measurements, appropriate for IMT’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 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.