AM Best Places Credit Ratings of Badger Mutual Insurance Company Under Review With Positive Implications
2024年10月4日 - 3:46AM
ビジネスワイヤ(英語)
AM Best has placed under review with positive
implications the Financial Strength Rating of C++ (Marginal) and
the Long-Term Issuer Credit Rating of “b+” (Marginal) of Badger
Mutual Insurance Company (Badger) (Milwaukee, WI).
The Credit Ratings (ratings) have been placed under review with
positive implications following the announcement that Badger and
Rural Mutual Insurance Company (Rural) have entered into an
affiliation agreement. The new relationship is expected to improve
Badger’s position as Rural has a much larger capital base and
provides a level of expertise in a key state that Badger already
writes business in. Each company will continue to function
separately affording continuity in operations and brand recognition
with long standing roots in the community. The affiliation remains
subject to regulatory approval, with an anticipated close in
January 2025. Notably, the affiliation agreement includes a quota
share agreement, wherein Badger will cede premiums and losses to
Rural. There is also an accompanying cost sharing agreement,
further enhancing efficiencies.
This affiliation comes on the heels of significant volatility in
Badger’s operating performance in 2022 and 2023, which contributed
to significant erosion in the company’s surplus position, primarily
impacted by elevated weather losses. In response, Badger pursued
several corrective actions including double-digit rate increases,
mandatory wind and hail deductibles and implementing roof actual
cash value schedules, as well as curtailing unfavorable risks.
Through the first half of 2024, results have improved comparatively
since the prior year, as efforts appear to gain traction. The
ratings will remain under review with positive implications until
the transaction closes, including customary regulatory approvals,
and until AM Best completes its evaluation of the new relationship
post transaction.
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 Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241003701845/en/
Quentin Harris Senior Financial Analyst +1 908
882 1816 quentin.harris@ambest.com
Christopher Draghi Director +1 908 882 1749
chris.draghi@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com