AM Best Revises Outlooks to Positive for Marysville Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Marysville Mutual Insurance Company (Marysville) (Marysville, KS).

The Credit Ratings (ratings) reflect Marysville’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised rating outlooks to positive are the result of favorable trends in the company’s balance sheet strength. This is due to consistent appreciation of policyholder surplus levels, declining leverage ratios, favorable reserve development and risk-adjusted capitalization. Overall, Marysville’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the strongest level. Marysville’s strong operating performance has resulted in robust surplus appreciation over the latest five years during which surplus has nearly doubled. Marysville’s surplus growth has led to consistent improvement in the company’s leverage and liquidity ratios, and risk-adjusted capitalization. However, as a single-state property insurer with geographic concentration in Kansas, Marysville’s limited scale of operations drive its limited business profile assessment. Lastly, ERM is appropriate due to consistent measurement and monitoring of the company’s main risks and reinsurance protection to mitigate its exposure to natural catastrophes.

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 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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Josie Novak, CPCU

Financial Analyst

+1 908 439 2200, ext. 5242

josie.novack@ambest.com

Janet Hernandez
Senior Financial Analyst

+1 908 439 2200, ext. 5767

janet.hernandez@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best