Midwest Family’s “A” Rating Affirmed

Posted on 4/6/2023

On April 5, 2023, 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 positive operating performance over the long term. “Although inflation negatively impacted the industry in 2022, Midwest Family was able to maintain it’s surplus levels through a combination of vigilant underwriting and prudent pricing,” said President & CEO Aaron Boyd. “As inflation continues to have an adverse effect on loss costs and the industry absorbs higher reinsurance costs, we will continue to focus on maintaining profit margins by enforcing insurance to value and executing on needed rate increases. By doing so, it ensures our organization’s future financial strength as we continue to defend and indemnify our policyholders in a fair and equitable manner. In 2023, we will continue our strategy of selectively partnering with only the best Independent Agents who have access to a healthy stable of carriers so that they may more appropriately match the right insurance product to their customers’ needs.”

In 2022, the Midwest Family Group of companies incurred a combined ratio of 100.4 which resulted in $2.5M of underwriting losses. Despite these adverse underwriting results and a $5.5 unrealized loss in its stock portfolio, the Midwest Family Group was able to maintain surplus at just over $131M due to increasing interest income and stock dividends. Midwest Family’s dedication to efficient operations resulted in a 23.7% underwriting expense ratio which should aid the financial results in 2023 and beyond.

Midwest Family Group was able to grow written premium to $249.3M which represented 7.3% growth over 2021. The company’s assets grew from $411.5M to $442.6M in 2022.

About Midwest Family Group – Midwest Family Group is a super-regional insurance carrier comprised of Midwest Family Mutual (MFM) and its wholly owned subsidiary Midwest Family Advantage (MFA). MFM is wholly owned by its policyholders and along with MFA writes $249.3M of direct written premium across 24 states. Midwest Family Group sells a wide array of personal and commercial lines exclusively through the Independent Agency distribution channel. Midwest Family Group is rated A (Excellent) by AM Best.