A.M. Best Assigns Credit Ratings to Agrinational Illinois Insurance Company; Affirms Credit Ratings of Affiliates
June 21 2017 - 3:10PM
Business Wire
A.M. Best has assigned a Financial Strength Rating (FSR)
of A- (Excellent) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “a-” to Agrinational Illinois Insurance
Company (Decatur, IL). The outlook assigned to these Credit
Ratings (ratings) is stable. Concurrently, the FSR of A-
(Excellent) and the Long-Term ICRs of “a-” of Agrinational
Insurance Company (Agrinational) (Burlington, VT) and its
wholly owned subsidiary, ADM Insurance Company (ADMIC)
(Phoenix, AZ) have been affirmed. The outlook of these ratings is
stable.
The ratings reflect their adequate risk-adjusted capitalization
and strategic role as captive insurers of Archer Daniels Midland
Company [NYSE: ADM]. The ratings also take into account a
significant reduction in premium volume following the sale of
Agrinational’s subsidiary, ADM Crop Risk Services, Inc., to
Validus Holdings, Ltd. in May 2017.
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.
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 Credit Ratings 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. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170621006240/en/
A.M. BestSusan Molineux, +1-908-439-2200, ext.
5829Senior Financial
Analystsusan.molineux@ambest.comorSteven M. Chirico, CPA,
+1-908-439-2200, ext.
5087Directorsteven.chirico@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Archer Daniels Midland (NYSE:ADM)
Historical Stock Chart
From Apr 2023 to Apr 2024