AM Best has made a significant update regarding Westfield Insurance Company and its affiliates, now giving them a stable outlook for their Long-Term Issuer Credit Ratings. This change comes after a period of negative outlook and reflects improvements in the company’s financial health. Westfield, which is based in Westfield Center, Ohio, is a subsidiary of Ohio Farmers Insurance Company.
The ratings highlight Westfield’s strong balance sheet and adequate operating performance. AM Best noted that the company’s risk management strategies are appropriate, contributing to its overall financial stability. The outlook change is largely due to improved operating results expected through the end of 2024.
Westfield’s combined ratio, an important measure of profitability, has improved and is projected to be below 100% in 2024. This positive trend is attributed to strategic pricing changes and a shift in focus towards more profitable insurance lines. Despite facing significant losses from storms and hurricanes, Westfield anticipates a return to positive net income in 2024, supported by strong investment performance and better underwriting results.
In terms of financial performance, Westfield Insurance Company reported a net income of $143 million in 2024, a notable recovery from a net income of $16 million in 2023 and a loss of $34 million in 2022. This growth in surplus is a welcome change after several years of decline, signaling a turnaround for the company.
Overall, the adjustments in ratings and outlook reflect Westfield’s efforts to strengthen its financial position and adapt to market conditions, which could bode well for its future performance.