AM Best Affirms Strong Ratings for American Family Mutual Insurance and Affiliates

AM Best has reaffirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Ratings (ICRs) of "a+" (Excellent) for American Family Mutual Insurance Company, S.I. and its core affiliates. The rating outlook remains stable, reflecting the company’s very strong balance sheet, adequate operating performance, favorable business profile, and solid enterprise risk management (ERM). American Family’s risk-adjusted capitalization is considered strongest by AM Best's Capital Adequacy Ratio (BCAR), supported by improved underwriting results, consistent investment income, and strategic capital enhancement via the recent sale of subsidiary insurance entities, bolstering financial flexibility for future initiatives.

For American Family Life Insurance Company (AFLIC), the FSR of A (Excellent) and Long-Term ICR of "a+" (Excellent) were also affirmed with a stable outlook. AFLIC maintains the strongest level of risk-adjusted capital despite significant dividend payments to American Family. The life insurer exhibits consistent profitability and benefits from diversification and steady earnings that complement American Family’s property and casualty operations.

The interconnectedness of ratings between American Family and AFLIC means that a change in American Family’s ratings could impact AFLIC’s as well, underpinning the importance of overall group financial health. The affirmed ratings also apply to NGM Insurance Company’s $70 million, 7.25%, 20-year surplus notes, rated "a-" (Excellent).

American Family operates as a multistate multiline writer with a strategic product, distribution, and geographic focus refined over the past decade through mergers, acquisitions, and dispositions. This evolution supports its favorable business profile assessment and positions the company for profitable growth amidst challenging economic conditions by emphasizing rate adequacy and underwriting discipline.

AM Best’s affirmations reinforce the strong capital positions and operational strength of key American Family affiliates, providing an indicator of stability and resilience within their market segments. These ratings serve as critical metrics for stakeholders assessing the insurer's financial health, risk exposure, and long-term viability within the competitive U.S. property and casualty and life insurance markets.