AM Best has revised its Long-Term Issuer Credit Rating Outlook (Long-Term ICR) to Stable from Negative and affirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term ICR of A+ (Excellent) for members of Bucyrus-based Ohio Mutual Insurance Group (OMIG). The FSR’s prospects are stable.
The ratings reflect OMIG’s balance sheet strength, which AM Best rates as the strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The change in long-term ICR outlook from negative to stable reflects the improvement in OMIG’s operating performance resulting from management initiatives implemented over the past few years.
Following consecutive underwriting losses in 2022 and 2023, driven by unusually high catastrophe losses and increased claim severity due to rising inflation, OMIG management implemented initiatives to support future profitability.
Management has addressed this volatility through interest rate increases and inflation adjustments, aggressive book-of-book recharacterization, non-renewal of certain policies, in-depth inspections and higher deductible requirements.
These measures led to an improvement in performance in the following years. OMIG remained profitable in 2026, despite the impact of a major disaster that would have had a greater impact on the group without these initiatives.
The continuous improvement in the implementation of these initiatives shows that the measures are sustainable and effective. AM Best expects that these actions will continue to maintain OMIG’s strong operating performance and align results with historical performance.
Source: AM Best
Topics
Trends AM Best Ohio
Was this article valuable?
Here are other articles you might like.
interest in Trends?
Receive automatic notifications for this topic.
