01/25/2023 | Press release | Distributed by Public on 01/25/2023 08:31
JANUARY 25, 2023 09:28 AM (EST)
AM Best Affirms Financial Strength Credit Rating for Acuity, A Mutual Insurance Company; Revises ICR Outlook to Negative
+1 908 439 2200, ext. 5509
Manager, Public Relations
+1 908 439 2200, ext. 5159
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 25, 2023 09:28 AM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "aa" (Superior) of Acuity, A Mutual Insurance Company (Acuity) (Sheboygan, WI). AM Best has revised the outlook to negative from stable for the Long-Term ICR, while the outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Acuity's balance sheet strength, which AM Best assesses at the strongest level, as well as its strong operating performance, favorable business profile and very strong enterprise risk management.
The negative outlook on Acuity's Long-Term ICR reflects pressure on the insurer's operating performance, following weakened results in 2022, primarily due to weather-related losses and declining investment performance, as well as the inflationary effects on the market. While Acuity's operating results previously have outperformed its commercial casualty composite, 2022 proved to be especially challenging, given the investment market volatility and outsized weather catastrophe losses in Acuity's mature states of Wisconsin, Minnesota, South Dakota and Iowa.
Acuity has implemented detailed strategies to restore underwriting profitability, which include action items such as rate changes, inflation guard pricing adjustments and geographic expansion to diversify its territorial footprint.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.