A.M. Best Downgrades Issuer Credit Rating of McMillan-Warner Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of McMillan-Warner Mutual Insurance Company (MWM) (Marshfield, WI). The outlook of the Long-Term ICR has been revised to stable from negative, while the outlook of the FSR remains stable.

The ratings reflect MWM’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 rating action reflects MWM’s volatility in underwriting performance, while the change in outlook reflects the strength of risk-adjusted capitalization and strong balance sheet liquidity. Recent management initiatives such as enhanced loss control efforts and tightened underwriting standards have improved underwriting results in typical years. However, years with more weather-related catastrophe events than expected continue to influence the company’s operating performance over the longer term.

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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A.M. Best

Christopher Jackson
Financial Analyst

+1 908 439 2200, ext. 5721

christopher.jackson@ambest.com

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Brian O’Larte

Director

+1 908 439 2200, ext. 5138

brian.o'larte@ambest.com

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Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

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Jim Peavy
Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: A.M. Best