AM Best Raises Credit Ratings on Forestry Mutual Insurance Company – InsuranceNewsNet

ALDWICK, New Jersey—(BUSINESS WIRE)–
AM Best raised the financial strength rating to A- (excellent) from B++ (good) and the long-term issuer credit rating to ‘a-‘ (excellent) from ‘bbb+’ (good) to Forestry Mutual Insurance Company (FMIC) (Raleigh, North Carolina). The outlook for these credit ratings (ratings) has been revised to stable from positive.

The ratings reflect the strength of FMIC’s balance sheet, which AM Best rates as very strong, as well as its adequate operating results, limited business profile and appropriate enterprise risk management (ERM).

The ratings upgrade reflects the sustained improvement in FMIC’s balance sheet strength, which is supported by risk-adjusted capitalization at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). The improved rating is the result of several factors: strong growth in excess policies over the past five-year period; indicators of solid liquidity; favorable loss booking trends; and maintaining a robust reinsurance program with manageable retention. Additionally, excess growth combined with a lower premium base has led to a reduction in leveraged insurance measures. AM Best expects that FMIC’s operating profitability will continue to increase the company’s surplus base going forward.

The ratings also reflect FMIC’s adequate operational performance, which is supported by disciplined underwriting practices and a conservative investment strategy. The limited business profile reflects the company’s position as a writer of monoline compensation for workers in the timber and forest industries, which exposes it to risks associated with the timber industry, such as changes in demand for wood products. AM Best considers the company’s ERM framework and risk management capabilities appropriate for its risk profile. FMIC is recognized for its aggressive safety and loss control processes, along with a commitment to long-term stability for its members.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, please see the Guide to the Proper Use of Best’s Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquarters in United Statesthe company develops business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Adrien Stark
Senior Financial Analyst

+1 908 439 2200, ext. 5526

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Dan Tecklow
Assistant Director

+1 908 439 2200, ext. 5394

[email protected]

Jeff Mango
Managing Director,

Strategic communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best

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