AM Best has recently upgraded the ratings for three insurance companies under the Midwest Insurance Group, which includes Midwest Insurance Company, West River Insurance Company, and Brickyard Insurance Company. These companies, based in Illinois, South Dakota, and Indiana respectively, have seen their Financial Strength Rating rise from A- to A, indicating an excellent financial position. Additionally, their Long-Term Issuer Credit Ratings have improved from “a-” to “a,” also reflecting strong performance. The outlook for these ratings is now stable, which is a shift from the previous positive outlook.
This upgrade highlights the group’s strong balance sheet, which AM Best rates as very strong. The assessment is based on their excellent risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio. The companies have shown consistent operating performance, supported by a well-managed investment portfolio that generates steady income. Their ability to maintain strong liquidity and cash flow also contributes to this positive evaluation.
Midwest Insurance Group’s operating performance has been upgraded to strong from adequate. This change is due to their solid underwriting results and increasing investment income. Over the past five and ten years, their performance has outpaced the average in the workers’ compensation sector, leading to healthy growth in their surplus. Their return on revenue and equity has also exceeded industry averages during this period.
However, the group does face some risks. As a monoline workers’ compensation insurer, they primarily serve small- to medium-sized agency partners, which makes them vulnerable to competition and changes in regulations or laws. To address these challenges, they focus on being responsive to their local agency partners.
In summary, the Midwest Insurance Group is in a strong financial position, backed by solid performance and effective risk management. The recent rating upgrades from AM Best reflect their ongoing commitment to maintaining financial strength and operational success.