Best Places Iowa Mutual Under Positive Review

A.M. Best Co. has placed the financial strength rating of “B” (Fair) of Dewitt-based Iowa Mutual Group under review with positive implications.

This rating action acknowledges the agreement between Iowa Mutual Group and Motorists Insurance Group to form a strategic alliance. Under the agreement, Iowa Mutual will become a participant in Motorists Insurance Group’s inter-company pool. Furthermore, Motorists Insurance will have majority control on Iowa Mutual’s board of directors.

A.M. Best views this transaction favorably for Iowa Mutual as it will provide it with access to additional products and increased financial security. This will also facilitate Motorists Insurance’s entrance into the Iowa market by providing it with a strong agency presence. This strategic alliance will have no impact on the financial strength of Motorists A.M. Best Co. has placed the financial strength rating of “B” (Fair) of Dewitt-based Iowa Mutual Group under review with positive implications.

This rating action acknowledges the agreement between Iowa Mutual Group and Motorists Insurance Group to form a strategic alliance. Under the agreement, Iowa Mutual will become a participant in Motorists Insurance Group’s inter-company pool. Furthermore, Motorists Insurance will have majority control on Iowa Mutual’s board of directors.

A.M. Best views this transaction favorably for Iowa Mutual as it will provide it with access to additional products and increased financial security. This will also facilitate Motorists Insurance’s entrance into the Iowa market by providing it with a strong agency presence. This strategic alliance will have no impact on the financial strength of Motorists Insurance.

The agreement between Iowa Mutual and Motorists Insurance is pending regulatory approval from Iowa’s Insurance Division. The rating will remain under review until approval is received from the Iowa Insurance Division, as well as Iowa Mutual policyholders. Once approvals are received A.M. Best will re-evaluate the structure of Iowa Mutual and likely assign the financial strength of rating of “A” (Excellent) of Motorists Insurance.

The Iowa Mutual Group consists of two domestic property/casualty insurance companies, Iowa Mutual Insurance Company and its wholly-owned subsidiary, Iowa American Insurance Company. The group offers a broad range of property/casualty products with slightly more emphasis on personal lines.

Iowa Mutual Insurance writes personal and small commercial policies, principally private passenger automobile, homeowners, workers’ compensation and other liability coverage. Iowa American writes commercial business, targeting low to moderate risks in the same areas as Iowa Mutual Insurance.