AM Best Revises Issuer Credit Rating Outlook to Stable for Westfield Insurance Company and Affiliates

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Westfield Insurance Company and its affiliates, collectively known as Westfield Group (Westfield). (See below for a detailed listing of the companies and Credit Ratings [ratings].) The outlook of the FSR is stable. All companies are wholly owned subsidiaries of Ohio Farmers Insurance Company, the ultimate parent, and are domiciled in Westfield Center, OH.

The ratings reflect Westfield’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revised Long-Term ICR outlook for Westfield reflects improvement in its operating results through year-end 2024 and the projected financial metrics. The combined ratio has improved and returned to sub-100% for 2024, driven by pricing actions and revisions to policies terms, as well as strategic re-balancing of growth toward more-profitable lines, including surplus market opportunities. A return to positive net income in 2024 was supported by strong investment results and improvement in net underwriting results despite higher-than-expected catastrophe losses from convective storms and two hurricanes. Westfield’s risk-adjusted capitalization remains at the strongest level, as measured by Best Capital Adequacy Ratio (BCAR). Improvement in operating performance led to surplus growth in 2024 following several years of decline.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with the Long-Term ICR outlook revised to stable from negative, while the outlook of the FSR is stable, for the following affiliates of Westfield Insurance Company:

Ohio Farmers Insurance Company
Old Guard Insurance Company
Westfield National Insurance Company
American Select Insurance Company
Westfield Champion Insurance Company
Westfield Premier Insurance Company
Westfield Superior Insurance Company
Westfield Touchstone Insurance Company
Westfield Specialty Insurance Company
Westfield Select Insurance Company

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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.