AM Best has revised the outlooks to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of American Family Mutual Insurance Company, S.I. (American Family), based in Madison, Wisconsin, and its core affiliates.
In addition, AM Best has revised the outlook to stable from negative and affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “a-” (Excellent) of the $70 million, 7.25%, 20-year surplus notes of NGM Insurance Company (Jacksonville, FL), an American Family affiliate.
Concurrently, AM Best has revised the outlook to stable from negative for the Long-Term ICR and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of American Family Life Insurance Company (AFLIC) (Madison, WI). The outlook of the FSRs is stable. (See below for a detailed listing of the companies and Credit Ratings [ratings].)
The ratings of American Family reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The revised Long-Term ICR outlook for American Family reflects the improvement in its operating results through the first half of 2024 and the projected year-end financial metrics.
AM Best said these results reflect the company’s dedication to restore profitability driven by significant rate increases along with other extensive underwriting actions. The organization is focused on profitable growth in its core segments.
In addition to improved underwriting results, the sale of Permanent General Assurance Corporation, Permanent General Assurance Corporation of Ohio, and General Automobile Insurance Company, commonly referred to as The General, which is expected to close in the fourth quarter of 2024, will significantly improve capital levels and provide financial flexibility for ongoing strategic initiatives.
Source: AM Best
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