OLDWICK, N.J., December 02, 2021--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to "a-" (Excellent) from "bbb+" (Good) of Bremen Farmers Mutual Insurance Company (Bremen) (Bremen, KS). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Bremen’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings upgrade reflects the sustained improvement in Bremen’s balance sheet strength, which is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The favorable balance sheet strength trends are the result of strong policyholder surplus appreciation that has outpaced net premiums written growth over the past five-year period. Additionally, the development of surplus appreciation has led to continually declining underwriting leverage measures. Bremen’s improved policyholder surplus trend is the result of consistently favorable operating performance. AM Best expects that profitability will continue to increase the company’s surplus base.
The ratings also reflect Bremen’s adequate operating performance, which is supported by sound underwriting practices and a conservative investment strategy. The company’s business profile is limited, driven by its concentration of property exposures in Kansas. Bremen also benefits from an appropriate ERM program that supports its risk profile and a comprehensive reinsurance program.
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 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.
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