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AM Best Downgrades Credit Ratings of Associated Mutual Insurance Cooperative
[September 21, 2023]

AM Best Downgrades Credit Ratings of Associated Mutual Insurance Cooperative

AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to "bb+" (Fair) from "bbb-" (Good) of Associated Mutual Insurance Cooperative (Associated Mutual) (Woodridge, NY). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Associated Mutual's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.

The rating downgrades consider a material change in Associated Mutual's reinsurance program through mid-year 2023 that has notably impacted risk-adjusted capitalization levels. The company's aggregate excess of loss contract, which previously covered 100% of losses above the attachment point, is now subject to a $20 million top limit, protecting up to its 1-in-100 year modeled event. As such, results are exposed to potentially severe events, particularly given Associated Mutual's high concentration of business in the downstate New York region. The balance sheet strength assessment was lowered to adequate from strong to reflect this inherent risk.

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 responsble 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

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