AM Best Improves Issuer Credit Rating for Farmers Mutual Insurance Company of Michigan


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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best raised the issuers long-term credit rating (long-term ICR) to “b +” (marginal) from “b” (marginal) and confirmed Farmers Mutual’s financial strength rating (FSR) of C ++ (marginal) Insurance Company of Michigan (FMIC) (Coldwater, MI). The outlook for credit ratings is stable.

The ratings reflect the strength of FMIC’s balance sheet, which AM Best considers adequate, as well as its marginal operational performance, very limited business profile and marginal management of corporate risks.

The long-term ICR upgrade reflects a trend of improved operating performance metrics compared to prior periods and a reduction in underwriting performance volatility from historical levels.

FMIC’s balance sheet strength is considered adequate due to strong risk-adjusted capitalization, high reinsurance dependency indicators and limited financial flexibility and scale of operations. FMIC’s business profile is considered to be very limited due to its business concentration in Michigan and its highly competitive market with low barriers to entry for competitors in its main lines of business. The ERM of the FMIC is assessed as marginal due to the evolution of the risk management framework.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

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

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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