A.M. Best Revises Outlooks to Stable for Farmers Mutual Insurance Company of Michigan
OLDWICK, N.J.--(BUSINESS WIRE)--Aug 22, 2018--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of C++ (Marginal) and the Long-Term Issuer Credit Rating of “b” of Farmers Mutual Insurance Company of Michigan (FMIBC) (Coldwater, MI).
The ratings reflect FMIBC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, very limited business profile and marginal enterprise risk management (ERM).
The revised outlooks reflect improved operating results and expansion of key ERM capabilities, such as policyholders’ surplus that has stabilized at a level meaningfully above the state-mandated $1 million. Some uncertainty exists in FMIBC’s prospective operating performance due to improved results in 2017, which contrast sharply with historical patterns observed as recently as 2016. The ratings are supported by risk-adjusted capitalization that has strengthened since 2015, the year it merged with another Michigan insurance carrier.
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 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 A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180822005512/en/
CONTACT: A.M. Best
+1 908 439 2200, ext. 5721
Senior Financial Analyst
+1 908 439 2200, ext. 5248
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 08/22/2018 12:12 PM/DISC: 08/22/2018 12:12 PM