AM Best Revises Issuer Credit Rating Outlooks to Negative for American Family Mutual Insurance Company, S.I., Its Affiliates and American Family Life Insurance Company
AM Best has revised the outlooks to negative from stable 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
The ratings of American Family reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The negative outlooks for American Family consider the significant earnings deterioration in the first half of 2022. Underwriting results have been impacted by catastrophe losses due to abnormal weather events in the Midwest in recent years, and combined ratios are pressured by rising indemnity costs. The earnings deterioration also resulted in reduced capital levels.
The ratings of AFLIC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.
The negative outlooks for AFLIC primarily reflect the overall business condition of the members of American Family. As AFLIC has a strong association with the property/casualty operations and currently receives lift from the lead rating unit, any change in the rating assigned to American Family will have a corresponding effect on AFLIC’s ratings.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with the outlook for the Long-Term ICRs revised to negative from stable, and the FSR outlook is stable for the following affiliates of
-
American Family Insurance Company -
American Family Connect Insurance Company -
American Family Connect Property and Casualty Insurance Company -
American Standard Insurance Company of Ohio -
American Standard Insurance Company of Wisconsin -
Austin Mutual Insurance Company -
The General Automobile Insurance Company, Inc. -
Grain Dealers Mutual Insurance Company -
Homesite Indemnity Company -
Homesite Insurance Company of California -
Homesite Insurance Company of Florida -
Homesite Insurance Company of Georgia -
Homesite Insurance Company of Illinois -
Homesite Insurance Company of New York -
Homesite Insurance Company of the Midwest -
Homesite Insurance Company -
Homesite Lloyd’s of
Texas -
Main Street America Assurance Company -
Main Street America Protection Insurance Company -
Midvale Indemnity Company -
MSA Insurance Company -
NGM Insurance Company -
Old
Dominion Insurance Company -
Permanent General Assurance Corporation of Ohio -
Permanent General Assurance Corporation -
Spring Valley Mutual 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.
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Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best
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