AM Best Affirms Excellent Ratings for American Family Insurance Group with Stable Outlook
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICRs) of 'a+' (Excellent) for American Family Mutual Insurance Company and its core affiliates. The stable outlook reflects the company's very strong balance sheet strength, adequate operating performance, favorable business profile, and appropriate enterprise risk management practices. American Family's risk-adjusted capitalization is at the strongest level according to Best’s Capital Adequacy Ratio (BCAR), supported by improved underwriting results and consistent investment income. The company's strategic moves, including the 2024 sale of Permanent General Assurance Corporation and related subsidiaries, have bolstered capital and financial flexibility.
American Family Life Insurance Company (AFLIC) also maintained its FSR of A (Excellent) and a Long-Term ICR of 'a+' (Excellent), with a stable outlook. AFLIC demonstrates the strongest balance sheet strength, stable operating and net income profitability, and has provided significant dividends to American Family recently. The life insurance operation contributes diversification and steady earnings to the group. Due to AFLIC's rating linkage to the lead rating unit, changes in American Family's ratings could affect AFLIC's ratings.
American Family operates as a multistate, multiline insurer, with a focused product and geographic mix following its merger and acquisition activities over the past decade. The ratings affirmations cover multiple affiliates, including Homesite Insurance companies and Main Street America entities, reflecting broad enterprise strength across the group.
This review by AM Best highlights the insurer's strong capital position and effective risk management amid economic challenges, underpinned by disciplined underwriting and strategic asset sales. The affirmed ratings support confidence in the group’s financial security and operational resilience, important for stakeholders including policyholders, investors, and regulators.
AM Best is a specialized global credit rating agency focused on the insurance industry, providing relevant ratings and analysis that influence market perceptions and decision-making. Their ongoing assessments help maintain market transparency and regulatory compliance standards.