A.M. Best Upgrades Ratings of Grain Dealers Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has upgraded the financial strength rating to B+ (Good) from B (Fair) and issuer credit rating to “bbb-” from “bb” as well as removed the ratings from under review with developing implications for Grain Dealers Mutual InsuranceCompany (Grain Dealers) (Indianapolis, IN). The outlook assigned to both ratings is positive. These rating actions follow the announcement that Grain Dealers and NGM Insurance Company (NGM), the lead carrier of the Main Street America Group (Main Street) (both of Jacksonville, FL), have executed an affiliation agreement following the approval by the Indiana Department of Insurance. The ratings and outlook for Main Street and its members are unchanged. The upgrades reflect the rating enhancement afforded Grain Dealers’ based on NGM’s financial strength. Partially offsetting rating factors is Grain Dealers’ deteriorated capital position, diminished risk-adjusted capitalization and its history of volatile operating performance. The rating outlook reflects NGM’s plan to reinsure 100% of Grain Dealers’ business, including all prior liabilities into NGM, mitigating A.M. Best’s concerns regarding Grain Dealers’ diminished capitalization and history of unfavorable operating results. For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. A.M. Best Co.AnalystsMarc Liebowitz, 908-439-2200, ext. 5071marc.liebowitz@ambest.comORKevin Dorsey, 908-439-2200, ext. 5401kevin.dorsey@ambest.comORPublic RelationsJim Peavy, 908-439-2200, ext. 5644james.peavy@ambest.comORRachelle Morrow, 908-439-2200, ext. 5378rachelle.morrow@ambest.com Source: A.M. Best Co.