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Best’s News & Research Service - June 07, 2018 08:18 AM (EDT)

A.M. Best Revises Outlooks to Stable for Center Mutual Insurance Company

  • June 07, 2018 08:18 AM (EDT)
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Oldwick //BestWire// - A.M. Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Center Mutual Insurance Company (Rugby, ND)

The ratings reflect Center Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

While Center Mutual posted positive operating results in 2017, the outlook revisions are due primarily to volatility in the company’s operating performance over an extended period. Although Center Mutual increased surplus in 2017, further supporting its overall balance sheet strength assessment of very strong, A.M. Best believes that operating results, which in most years are favorable, have varied widely, which is unlikely to result in a change in the adequate operating performance assessment over the intermediate term. Accordingly, the outlooks have been revised to stable.

The affirmation of the ratings reflects Center Mutual’s ability to improve overall risk-adjusted capitalization and maintain underwriting leverage ratios despite periods of rapid growth and challenging weather conditions during the latest five-year period.

Most of the company’s business is produced in North Dakota, which leaves it exposed to frequent and severe weather-related events, as well as judicial, regulatory and economic changes.

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.

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



Financial Strength Mutual Insurers North Dakota Press Release A.M. Best Rating Services, Inc. Insurance Issuer Credit Rating Best's Credit Rating Action Rating Event


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