AM Best has made a positive change to Westfield Insurance Company’s ratings. The firm has revised the outlook for the Long-Term Issuer Credit Ratings from negative to stable. At the same time, they affirmed the Financial Strength Rating of A (Excellent) for Westfield and its affiliates, which are part of the Westfield Group based in Westfield Center, Ohio. All these companies are owned by Ohio Farmers Insurance Company.
This change reflects Westfield’s strong balance sheet and its solid operating performance. AM Best highlighted that the company has been improving its financial results and is now on track for better outcomes through the end of 2024. The combined ratio, a key measure of an insurance company’s profitability, has improved and is expected to drop below 100% in 2024. This improvement is attributed to better pricing strategies and adjustments in policy terms, along with a shift towards more profitable insurance lines.
Westfield is also seeing a return to positive net income, which is projected to reach $143 million in 2024. This follows a much smaller profit of $16 million in 2023 and a loss of $34 million in 2022. The company has managed to achieve these results despite facing higher-than-expected losses from severe weather events, including storms and hurricanes.
The ratings agency noted that Westfield’s risk-adjusted capitalization remains strong, indicating that the company is well-prepared to handle potential losses. The positive trend in operating performance has also led to growth in the company’s surplus after several years of decline.
Overall, the outlook change and the strong financial results signal a bright future for Westfield Insurance Company and its affiliates.