AM Best Affirms Rating of A (Excellent) with Stable Outlook for Midwest Family Group
On March 10, 2022, AM Best affirmed an A (Excellent) Rating for Midwest Family Group with a stable outlook. This rating applies to Midwest Family Mutual as well as its wholly owned subsidiary Midwest Family Advantage. This “A” Rating is a reflection of the group’s operating performance over the long term. These positive financial results are due in part to the group’s successful strategy of product and geographic expansion over the past 12 years coupled with the strong and exclusive relationships that have been formed with Independent Agents across 22 states.
In 2021, the Midwest Family Group of companies incurred a combined ratio of 103 which resulted in $6M of underwriting losses. These underwriting losses were driven in part by $12.9M of deficient prior year development on primarily long tailed casualty business. That prior year experience along with current year reserve strengthening put pressure on the company’s operating income. Despite these adverse underwriting results, Midwest Family was able to grow surplus from $119M to $131M on strong investment gains. In addition, the company was able to show strong strengthening of reserves which should lower the impact of prior year development in future years. Midwest Family’s dedication to efficient operations resulted in a 24.7% expense ratio which should aid the financial results in 2022 and beyond.
Midwest Family Group was able to grow written premium to $232.4M which represented 7.2% growth over 2021. The company’s assets grew from $358M to $411.5M in 2021.