Germania Farm Mutual Insurance Association is no longer categorised as ‘under review with negative implications’ by AM Best, and has been assigned a financial strength rating of B (fair) and a long-term issuer credit rating of bb+ (fair) with a positive outlook.
Amendments follow the successful implementation of operational and capital management plans made by the firm in September 2024, when ratings were placed under review.
Commercial insurance firm Oregon Mutual Group has also been removed from AM Best’s ‘under review with negative implications’ list, but has fallen from A- (excellent) to B++ (good) in its financial strength rating and from a- (excellent) to bbb (good) in long-term issuer credit.
The changes are the result of weaker balance sheet metrics in the business, which AM Best attributes to surplus erosion over the last three years.
The outlook for these revisions is stable.
Elsewhere in this tranche of ratings, AM Best has assigned an A (excellent) financial strength and a (excellent) long-term credit rating to The Tokio Marine and Nichido Fire Insurance Company (China) (TMNCH), with a stable outlook.
The non-life insurance provider, based in China, has been active since 2008. It is owned by Tokio Marine & Nichido Fire Insurance (TMNF), Tokio Marine Holdings’ main insurance operating entity. The parent company recently received a ratings enhancement, boosting TMNCH’s results.
Outlooks for the ratings are stable, thanks to a strong operating performance and risk-adjusted capitalisation.
Three firms have had their credit outlooks reassigned. Mexican title insurance leader Armour Secure Insurance has transitioned from a stable to positive credit rating outlook. Ratings themselves have remained the same, B+ (good) for financial strength, and bbb- (good) for long-term issuer credit.
AM Best states that the adjustment follows improved communications between Armour and its holding company, Trebuchet Group Holdings, and continued strong performance and risk-adjusted capitalisation.
Insurance and reinsurance underwriter SiriusPoint similarly gained a positive outlook from stable, maintaining its A- (excellent) financial strength and a- (excellent) long-term issuer credit ratings. AM Best reported an improved, very strong consolidated balance sheet.
Suez Canal Insurance also saw a boost, moving from a negative to stable outlook thanks to a strong balance sheet, improved operating performance, a reduced loss ratio and underwriting profits. Ratings have remained at B- (fair) for financial strength and bb- (fair) for long-term issuer credit.
US specialty insurance provider Argo Group International lost its positive outlook, being reassigned as stable. Its ratings remain unchanged, with subsidiaries maintaining an A- (excellent) financial strength and a- (excellent) long-term issuer credit rating.
“The revision of the outlooks to stable from positive is due to continued earnings weakness and material deviation of results from management’s projections. Although Argo Group’s management team is taking corrective actions to improve the operating performance of the organisation, its run-off lines of business continued to generate sizeable losses, which have offset more profitable results of ongoing lines of business,” the ratings agency noted.
Only one firm has been placed under review in this batch of ratings. Helvetica Holding’s primary subsidiary, Helvetia Schweizerische Versicherungsgesellschaft, may see its credit ratings change upon the completion of its plan to merge with Baloise Holding. The deal is expected to close in Q4.
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