AM Best Upgrades Credit Ratings for Members of Midwest Family Group
We’re proud to announce that AM Best has upgraded Midwest Family Group to a Financial Strength Rating of “A” (Excellent). The group’s outlook has been revised to stable to reflect this upgrade. This Financial Strength Rating will impact both Midwest Family Mutual Insurance Company (MFM) as well as its wholly owned subsidiary Midwest Family Advantage. This “A” Rating is a reflection of the group’s underwriting performance in recent years driven by strategic initiatives to diversify its products and geographic footprint. Our execution against these initiatives coupled with the strong and exclusive relationships we’ve built with our Independent Agents are the primary reasons we’ve posted eight straight years of underwriting profit with relatively low volatility over the years.
This great news comes on the heels of another successful year. Midwest Family Group posted a 95.7 combined ratio in 2020. This past year presented numerous challenges headlined by the COVID-19 pandemic that brought on recessionary conditions and other business challenges. Despite an uptick in our loss ratio in 2020, MFM was able to earn an underwriting profit by maintaining an underwriting expense ratio of 24.1%. MFM’s underwriting expense ratio has been roughly 4% lower than the rest of the industry over the past five years. In fact, MFM’s ability to defend and indemnify its policyholders more cost effectively than the rest of the industry is a major reason why the company has been able to earn a meager profit the past eight years while offering competitive premiums.
As a whole, Midwest Family Group wrote $216.7M of written premium in 2020 representing an annual growth rate of 11.2%. Policyholder surplus ended at $119.3M and assets totaled $358M as of December 31st, 2020.
For a full description of the AM Best’s rationale regarding Midwest Family Group’s Financial Rating upgrade, you may review the following press release: