AM Best revise outlook to stable for Northern Mutual Insurance Company.

Oldwick, NJ–()–AM Best Northern Mutual Insurance Company (NMIC), Hancock, Mich. confirmed.

The Credit Rating (Rating) reflects the strength of NMIC’s balance sheet, which AM Best assesses as very strong, as well as adequate operating performance, limited business profile and adequate corporate risk management.

The revised outlook reflects significant volatility in NMIC’s operating results over the past five years and significantly lower operating results in 2022 as a result of increased losses from weather-related events and market pressures in its automotive line. I’m here. The company’s 5-year and 10-year average operating metrics are favorable compared to the standard automobile and homeowner complexes for individual passengers, but the volatility of results over the past 5 years and unfavorable 2022 Combined with the results, NMIC received an appropriate performance review resulting in a change of outlook from positive to stable. As management’s corrective actions on pricing begin to bear fruit, results will begin to return to historical norms in the near term, with modest volatility expected from its inherent catastrophe exposure.

The ratings also reflect NMIC’s strongest level of risk-adjusted capital as measured by the Best’s Capital Adequacy Ratio (BCAR), strong liquidity metrics driven by a high-quality investment portfolio, and a It reflects a comprehensive reinsurance program that works. The company operates only in Michigan, specifically the Upper Peninsula, so its business profile is limited. Despite its local market expertise in the region, the company continues to be exposed to highly competitive markets and potential changes in the regulatory, legislative and judicial environment. NMIC’s risk management capabilities are considered suitable for the complexity and overall risk profile of the business.

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