A.M. Best has removed from under review with positive implications and upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb” of Michigan Millers Mutual Insurance Co. (Michigan Millers) in Lansing, Mich.
The outlook assigned to both ratings is stable. These rating actions follow regulatory approvals of an affiliation agreement between Michigan Millers and Western National Mutual Insurance Co. (Western National) in Edina, Minn.
The affiliation is expected to provide the companies with increased diversification through additional spread of risk and geographic reach, while providing Michigan Millers access to Western National’s independent agency base. A.M. Best expects that Michigan Millers will continue to operate as a separate entity writing commercial lines following its recent decision to exit the personal lines market.
With the affiliation, Michigan Millers is part of a larger, more diversified insurance group, which should result in improved economies of scale for the company. In addition, a number of implicit and explicit support mechanisms are being implemented by Western National, which should benefit Michigan Millers on a going forward basis.
Source: A.M. Best
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