A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of West Bend Mutual Insurance Co. in West Bend, Wisconsin.
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable.
The ratings reflect West Bend’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The upgrade of the Long-Term ICR considers West Bend’s strict underwriting guidelines and strong claims handling practices leading to strong underwriting over the past five-year period, which have outperformed the commercial casualty composite.
Furthermore, consistent reserving practices have resulted in favorable calendar and accident-year development trends. Partially offsetting factors include modest volatility, earlier in the past 10-year period, and average pre-tax return measures that are lagging the composite.
Although West Bend has a spread of underwriting risk in multiple states, there is concentration within the Midwest United States, most notably in its state of domicile, Wisconsin.
Source: A.M. Best
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