A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Northwest G.F. Mutual Insurance Co. (NWGF) in Eureka, South Dakota.
The ratings reflect NWGF’s balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The company specializes in small farm and personal lines of insurance and has been serving the Dakotas for more than 115 years. It distributes its products through independent agents.
The revised outlooks reflect the significant improvement in underwriting results that have been reported in recent years, in sharp contrast to more marginal performance over the longer term.
This is attributed to the efforts of new management to implement stricter underwriting standards as part of a broader effort to improve operating performance.
The marginal assessment on balance reflects the considerable volatility in underwriting performance over the longer term, which contrasts with the much improved operating performance in recent years.
As the years of weaker performance fade over time, so too would their impact on this assessment.
Source: A.M. Best
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