AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb+" of Bremen Farmers Mutual Insurance Company (Bremen) (Bremen, KS).
The Credit Ratings (ratings) reflect Bremen’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revised Long-Term ICR outlook to positive is the result of favorable trends in Bremen’s balance sheet strength. This is due to continued improvements in policyholder surplus levels, leverage ratios and risk-adjusted capitalization. Overall, Bremen’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is strongest. Due to Bremen’s profitability in recent years, surplus growth has outpaced growth in net premiums written. This has caused strong surplus appreciation in the latest five years and is the fourth consecutive year Bremen has surplus above $20 million. This growth has led to improvements in the company’s leverage ratios and risk-adjusted capitalization consistently. Additionally, Bremen has limited scale of operations. The company’s business profile is limited due to the product offerings as a single-state property insurer and geographic concentration in Kansas.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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