Press Release - MAY 16, 2018

A.M. Best Revises Outlooks to Stable for Associated Mutual Insurance Cooperative


CONTACTS:
 Christopher Jackson
Financial Analyst
+1 908 439 2200, ext. 5721
christopher.jackson@ambest.com

Brian O’Larte
Director
+1 908 439 2200, ext. 5138
brian.o’larte@ambest.com

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

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

FOR IMMEDIATE RELEASE

OLDWICK - MAY 16, 2018
A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Associated Mutual Insurance Cooperative (Associated Mutual) (Woodridge, NY).

The Credit Ratings (ratings) reflect Associated Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks also reflect Associated Mutual’s improved operating return measures such as total and pre-tax returns on revenue and equity, and underwriting and operating performance since 2015. These rating factors have been driven primarily by new management initiatives including diversification of the company’s product lines, implementation of a comprehensive reinsurance program expected to reduce loss ratio volatility, and targeted improvement of loss adjustment expenses. As a result of these initiatives, the company’s risk-adjusted capitalization has improved since 2015. These favorable rating attributes are offset to some extent by the company’s limited financial flexibility and scale of operations.

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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AMB# Company Name
004829 Associated Mutual Insurance Cooperative