A.M. Best Affirms Ratings of Agrinational Insurance Company and ADM Insurance Company
August 18 2016 - 5:36PM
Business Wire
A.M. Best has affirmed the financial strength rating of
A- (Excellent) and the issuer credit ratings of “a-” of
Agrinational Insurance Company (Agrinational) (Burlington,
VT) and its wholly owned subsidiary, ADM Insurance Company
(ADMIC) (Phoenix, AZ). The outlook for each of these ratings is
stable.
The ratings reflect their adequate risk-adjusted capitalization
and strategic role in the crop insurance program and as captive
insurers of Archer Daniels Midland Company [NYSE:ADM].
Partially offsetting the favorable rating factors is the high
net retention on property exposures, which has produced some
variability in operating results and capital. Also, as a single
parent captive, Agrinational is exposed to concentration risk as
captives’ primary source of business is generally from one company.
This is somewhat minimized by the group’s diversified book of
business and the parent’s geographically disbursed assets. The
captive program also provides insurance for a limited amount of
third-party business sourced through an industry pooling
arrangement. In addition, the crop insurance program, written by
ADMIC and 100% reinsured to Agrinational, further diversifies the
exposure and concentration of risk. This program continues to grow
annually.
As a means of diversifying its investment portfolio,
Agrinational has invested in the leasing of railcars, tractor
trailers, tugboats and barges. Management considers these
investments as long term and better aligned with Agrinational’s
capital structure, while providing stability in investment
returns.
A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit www.ambest.com/captive.
This press release relates to rating(s) that have been
published on A.M. 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 A.M.
Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating
Services, Inc. ALL RIGHTS RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160818006285/en/
A.M. BestSusan Molineux, +1 908 439 2200, ext.
5829Senior Financial
Analystsusan.molineux@ambest.comorChristopher Sharkey,
+1 908 439 2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorSteven Chirico, +1
908 439 2200, ext. 5087Assistant Vice
Presidentsteven.chirico@ambest.comorJim Peavy, +1 908
439 2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From Sep 2023 to Sep 2024