AM Best Affirms Credit Ratings of Agrinational Insurance Company
16 Mai 2024 - 5:52PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Agrinational Insurance Company (Agrinational)
(headquartered in Colchester, VT). The outlook of these Credit
Ratings (ratings) is stable.
The ratings reflect Agrinational’s balance sheet strength, which
AM Best assesses as strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management. The company also receives rating enhancement
provided by its ultimate parent, Archer Daniels Midland Company
(ADM) [NYSE: ADM].
Agrinational’s strong balance sheet strength is supported by its
risk-adjusted capitalization at the strongest level, as measured by
Best’s Capital Adequacy Ratio (BCAR), conservative investment
strategy, and appropriate reinsurance structure in place with
highly rated reinsurers. In addition, the company is afforded
financial flexibility and support from ADM. Agrinational’s adequate
operating performance reflects the positive trend in its improved
combined and operating ratios resulting from the benefits of the
company’s strategy in focusing on its core business while exiting
from restrictive and non-core exposures. While the company produced
net loss results in 2023 due to large claims, management expects
operating performance to return to its positive trend in the near
term. Agrinational has a low cost-expense structure and a keen
underwriting focus with an emphasis on risk management controls,
which are well-integrated with those of its parent. Agrinational
provides a variety of coverages with a focus on commercial property
and marine coverages, workers’ compensation, general liability and
a medical expense cost containment program for ADM.
The ratings also reflect rating enhancement provided to
Agrinational by ADM, one of the world’s largest agricultural
processors and food ingredient providers. Agrinational holds a
strategic position within ADM, serving a critical role in meeting
certain global insurance requirements and providing risk management
services to ADM and its subsidiaries. ADM in turn provides implicit
and explicit support to Agrinational.
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. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240516201279/en/
Chul Lee Senior Financial Analyst +1 908 882
2005 chul.lee@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Fred Eslami Associate Director +1 908 882
1759 fred.eslami@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
Von Jun 2023 bis Jun 2024