A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of C++ (Marginal) and the Long-Term Issuer Credit Rating of “b” of Farmers Mutual Insurance Company of Michigan (FMIBC) in Coldwater, Michigan.
The ratings reflect FMIBC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, very limited business profile and marginal enterprise risk management (ERM).
The revised outlooks reflect improved operating results and expansion of key ERM capabilities, such as policyholders’ surplus that has stabilized at a level meaningfully above the state-mandated $1 million.
Some uncertainty exists in FMIBC’s prospective operating performance due to improved results in 2017, which contrast sharply with historical patterns observed as recently as 2016.
The ratings are supported by risk-adjusted capitalization that has strengthened since 2015, the year it merged with another Michigan insurance carrier.
Source: A.M. Best
Topics Trends Agribusiness Michigan
Was this article valuable?
Here are more articles you may enjoy.
Acrisure to Cut 2,250 Employees, Citing Advances in Technology and AI 
NY Archdiocese Can Depose Chubb CEO Greenberg in Clergy Abuse Claims Case 
US P/C Insurers Post Biggest Q1 Underwriting Profit in 25 Years 
Moody’s: US Faces $375B in Uninsured Flood Losses From 1-in-100-Year Event 
