AM Best


AM Best Affirms Credit Ratings of American Family Mutual Insurance Co., S.I., Its Affiliates and American Family Life Ins. Co.


CONTACTS:

Joni Cerbone, CPA
Senior Financial Analyst
+1 908 439 2200, ext. 5726
joni.cerbone@ambest.com

Robert Raber
Director
+1 908 439 2200, ext. 5696
robert.raber@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 27, 2021 10:13 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of American Family Mutual Insurance Company, S.I. (American Family) (Madison, WI) and its affiliates. In addition, AM Best has affirmed the Long-Term Issue Credit Rating of “bbb+” (Good) of the $70 million 7.25% 20-year surplus notes of affiliate, NGM Insurance Company (Jacksonville, FL). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of American Family Life Insurance Company (AFLIC) (Madison, WI). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)

The ratings of American Family reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The ratings are supported by American Family’s risk-adjusted capitalization, which AM Best considers to be at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as management’s historical commitment to surplus preservation and growth. Investment income continues to drive the company’s consistent operating performance, as underwriting results improve and continue to return to more favorable historic norms. American Family is a multi-state, multi-line writer. Its product mix, distribution channels and geographic mix have become more diverse through mergers and acquisitions activity over the past decade, which further supports the business profile assessment.

The ratings of AFLIC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect support the company receives from its parent, American Family Mutual Insurance Company, S.I.

AFLIC paid $870 million in dividends to American Family over the past three years; however, its risk-adjusted capitalization remains at the strongest level. AFLIC has shown consistent profitability on an operating level and a net income level.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following affiliates of American Family Mutual Insurance Company, S.I.:


  • American Family Insurance Company

  • American Family Connect Insurance Company

  • American Family Connect Property and Casualty Insurance Company

  • American Standard Insurance Company of Ohio

  • American Standard Insurance Company of Wisconsin

  • Austin Mutual Insurance Company

  • The General Automobile Insurance Company, Inc.

  • Grain Dealers Mutual Insurance Company

  • Homesite Indemnity Company

  • Homesite Insurance Company of California

  • Homesite Insurance Company of Florida

  • Homesite Insurance Company of Georgia

  • Homesite Insurance Company of Illinois

  • Homesite Insurance Company of New York

  • Homesite Insurance Company of the Midwest

  • Homesite Insurance Company

  • Homesite Lloyd’s of Texas

  • Main Street America Assurance Company

  • Main Street America Protection Insurance Company

  • Midvale Indemnity Company

  • MSA Insurance Company

  • NGM Insurance Company

  • Old Dominion Insurance Company

  • Permanent General Assurance Corporation of Ohio

  • Permanent General Assurance Corporation

  • Spring Valley Mutual Insurance 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 Guide to 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 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.


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