A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Badger Mutual Insurance Company (Badger) of Milwaukee, Wis.
The negative outlook reflects the deterioration in Badger’s underwriting results, coupled with losses to the company’s surplus in recent years. The deterioration in underwriting performance was due to Badger’s exposure to significant weather-related losses, which led to three consecutive years of negative underwriting performance.
The affirmation of the ratings reflects Badger’s strong risk-adjusted capitalization and long-term agency relationships.
Source: A.M. Best