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A.M. Best Revises Outlooks to Positive for Wisconsin Mutual Insurance Company


CONTACTS:

Kevin Dorsey
Senior Financial Analyst
+1 908 439 2200, ext. 5401
kevin.dorsey@ambest.com

Joseph Burtone
Assistant Vice President
+1 908 439 2200, ext. 5125
joseph.burtone@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 26, 2016 11:16 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 Wisconsin Mutual Insurance Company (WMIC) (Madison. WI).

The revised outlooks reflect WMIC’s trend of strong operating results that outperformed the five-year average of the private passenger standard auto and homeowners’ composite. Policyholders’ surplus has grown as a result of better-than-average underwriting performance, which resulted in the company’s five-year average pre-tax and total returns on revenue and equity to exceed the composite average. However, declining net investment income due to the prolonged low interest rate environment has tempered total returns. In addition, the company’s five-year average combined and operating ratios outperformed the composite. These results were driven by WMIC’s favorable loss reserve development, reflective of its strict underwriting standards, pricing initiatives, expense discipline and overall exposure management.

The ratings reflect WMIC’s solid risk-adjusted capitalization attributable to modest underwriting leverage, a comprehensive reinsurance program and a conservative investment portfolio. Furthermore, the ratings reflect WMIC’s long-standing agency relationships and established market presence in Wisconsin.

These positive rating factors are partially offset by the company’s geographic concentration of risk. As a single-state writer with all of its business conducted in Wisconsin, the company is exposed to frequent and severe weather-related events, as well as judicial and regulatory issues that may arise.

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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.


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AMB# Company Name
003524 Wisconsin Mutual Insurance Company