AM Best Affirms Credit Ratings of Agrinational Insurance Company and Its Subsidiaries

December 14, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Dec 14, 2018--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Agrinational Insurance Company (Burlington, VT) and its wholly owned subsidiaries (collectively referred to as ADM Insurance Group). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ADM Insurance Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The affirmation of the ratings reflects the strongest measures of risk-adjusted capitalization and implicit support provided by the group’s ultimate parent, Archer Daniels Midland Company [NYSE:ADM]. Its operating performance experiences volatility occasionally due to its high net retention on property exposures. Nonetheless, the operating performance of the insurance entities has been adequate due to the low cost-expense structure and focus on ERM. Consequently, ADM Insurance Group has produced positive net income for the past five years. In May 2017, Agrinational Insurance Company sold its subsidiary, ADM Crop Risk Services, Inc., to Validus Holdings, Ltd., which resulted in significant reduction of Agrinational Insurance Company’s premium volume. This has reshaped the strategic alignment of insurance operations in relationship to the ultimate parent from a captive with third-party business to that of a pure captive.

The FSR of A- (Excellent) and Long-Term ICRs of “a-” have been affirmed with stable outlooks for Agrinational Insurance Company and its following wholly owned subsidiaries:

ADM Insurance Company Agrinational Illinois Insurance Company

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit .

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Charlie Smentkowski

Financial Analyst

+1 908 439 2200, ext. 5684

charlie.smentkowski@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comSusan Molineux

Associate Director

+1 908 439 2200, ext. 5829

susan.molineux@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 12/14/2018 12:13 PM/DISC: 12/14/2018 12:13 PM


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