Best’s News & Research Service - March 22, 2018 12:40 PM (EDT)
A.M. Best Removes From Under Review, Upgrades ICRs of American Family Mutual Ins Co, Its Affiliates, American Family Life Ins Co
- March 22, 2018 12:40 PM (EDT)
Oldwick //BestWire// - A.M. Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of American Family Mutual Insurance Company, S.I. (American Family) (Madison, WI) and its affiliates. Concurrently, A.M. Best has removed from under review with positive implications and upgraded the Long-Term ICR to “a+” from “a” and affirmed the FSR of A (Excellent) of American Family Life Insurance Company (AFLIC) (Madison, WI). The outlook assigned to these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)
The ratings were placed under review with positive implications on Oct. 13, 2017, following the release of the updated Best’s Credit Rating Methodology (BCRM). These rating actions follow the completion of A.M. Best’s analysis of American Family and its subsidiaries under the updated BCRM.
The ratings of American Family reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). The stable outlooks reflect the group’s strengthening business profile and national presence, the size and strength of their consolidated balance sheet, which support management’s goals and future development, and historically stable operating performance.
Similarly, the ratings of AFLIC reflect its balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect lift the company receives from its parent, American Family Insurance Mutual Holding Company.
Positive rating action may occur if American Family’s operating performance consistently exceeds peer companies over an extended period. Negative rating action may occur for both entities if underwriting and operating performance falls markedly short of A.M. Best’s expectation coupled with a decline in the group’s risk-adjusted capitalization.
The Long-Term ICRs have been upgraded to “a+” from “a” while the FSR of A (Excellent) has been affirmed, both with assigned outlooks of stable for the following affiliates of American Family Mutual Insurance Company, S.I.:
- American Family Insurance Company
- American Standard Insurance Company of Ohio
- American Standard Insurance Company of Wisconsin
- The General Automobile Insurance Company, Inc.
- 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
- Midvale Indemnity Company
- Permanent General Assurance Corporation of Ohio
- Permanent General Assurance Corporation
This press release relates to Credit Ratings 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. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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