MAY 12, 2016 08:55 AM (EDT)
A.M. Best Revises Outlook to Positive for Rural Mutual Insurance Company
|Joseph A. Burtone |
Assistant Vice President
+1 908 439 2200, ext. 5125
+1 908 439 2200, ext. 5432
Manager, Public Relations
+1 908 439 2200, ext. 5159
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - MAY 12, 2016 08:55 AM (EDT)
A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a+” of Rural Mutual Insurance Company (Rural) (Madison, WI).
The revision in the outlooks to positive reflects Rural’s solid capitalization, consistent operating profitability, local market expertise and sound risk management capabilities.
The ratings reflect management’s strict adherence to underwriting discipline, pricing adequacy and conservative investment portfolio. As a result, the company’s five-year and 10-year average pre-tax and total returns on revenue and equity compare favorably to the private passenger standard auto and homeowners composite. Consistent underwriting income coupled with a steady stream of investment income has resulted in five consecutive years of pre-tax operating gains and surplus appreciation. The company’s results are also augmented by management’s local market expertise and sound risk management capabilities, which are reflected in consistent and stable operating results over the long-term.
These positive factors are partially offset by the company’s geographic concentration of risk. As a single state writer in Wisconsin, the company is exposed to frequent and severe weather-related events, as well as judicial and economic concerns. These factors are partially mitigated by the company’s diverse product offerings in both personal and commercial lines products. In addition, Rural’s loyal captive agency base provides stability and is engrained in the communities they serve.
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 see A.M. Best’s Recent Rating Activity web page.
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