OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” of American Family Mutual Insurance Company, S.I. (American Family) (Madison, WI) and its affiliates. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” of American Family Life Insurance Company (AFLIC) (Madison, WI). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)
The ratings of American Family reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Balance sheet strength is supported by favorable operating performance, which is driven by retained earnings from investment income, fee income and realized capital gains. While underwriting results continue to restrain overall operating performance, underwriting losses have improved materially year-over-year in a more normalized catastrophe environment. In addition, the organization’s growing geographic, product, and distribution mix, following the merger with Main Street America Group and pending acquisition of Ameriprise Auto & Home (Ameriprise P&C), further support the assessment.
The ratings of AFLIC reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect support the company receives from its parent, American Family Insurance Mutual Holding Company.
AFLIC paid a $500 million dividend to American Family in 2018, but its balance sheet remained in line with AM Best’s assessment. Future dividend activity may impact AM Best’s assessment negatively.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been affirmed with a stable outlook for the following affiliates of American Family Mutual Insurance Company, S.I.:
- American Family Insurance Company
- American Standard Insurance Company of Ohio
- American Standard Insurance Company of Wisconsin
- The General Automobile Insurance Company, Inc.
- Homesite Indemnity Company
- Homesite Insurance Company of California
- Homesite Insurance Company of Florida
- Homesite Insurance Company of Georgia
- Homesite Insurance Company of Illinois
- Homesite Insurance Company of New York
- Homesite Insurance Company of the Midwest
- Homesite Insurance Company
- Homesite Lloyd’s of Texas
- Midvale Indemnity Company
- Permanent General Assurance Corporation of Ohio
- Permanent General Assurance Corporation
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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