AM Best ratings affirm American Family's financial strength

AM Best ratings affirm American Family's financial strength

AM Best has affirmed American Family Insurance's 'A' (Excellent) financial strength rating, the third highest of their 13 ratings, for the 23rd consecutive year. It also affirmed the long-term issuer credit rating of 'a+' (Excellent) the third highest of their nine ratings, for the eighth year in row. All ratings were assigned a stable outlook.

AM Best credit rating services assess the creditworthiness of and/or reports on thousands of insurance companies worldwide. Financial strength ratings focus on an insurer's ability to meet its obligations to policyholders, primarily its claims-paying ability. Issuer credit ratings assess the insurer's overall creditworthiness and ability to meet financial obligations (such as debt and interest payments).

The ratings of American Family reflect its balance sheet strength, which AM Best assesses as very strong, as well as its operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The ratings are also supported by American Family's risk-adjusted capitalization, which AM Best considers to be at the strongest level. Operating performance reflects stronger underwriting results year-over-year and consistent investment income.

AM Best notes American Family is addressing challenging economic trends through effective rate and other underwriting actions while maintaining a focus on growth.

The company gained financial flexibility for important initiatives due to significantly improved capital levels, AM Best highlighted, following the sale of The General in the fourth quarter of 2024.

At the same time, AM Best also affirmed the 'A' financial strength rating and 'a+' issuer credit rating (both Excellent) of American Family Life Insurance Company (AFLIC). The ratings of AFLIC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its operating performance, business profile and appropriate ERM. AM Best reports AFLIC has shown consistent profitability on operating and net income levels.

AM Best has distinguished American Family as a "Standing the Test of Time" company, which is represented by having a financial strength rating of 'A' or better for at least 75 years.

See this link to access the AM Best news release about American Family's ratings and more detailed explanations of ratings.

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About American Family Insurance
American Family Insurance, a mutual holding company based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance Group is the nation's 12th-largest property/casualty insurance group, ranking No. 202 on the Fortune 500 list. American Family has a current 'a+' credit rating through AM Best, and has distinction as a "Standing the Test of Time" company, which is represented by having an AM Best financial strength rating of 'A' or better for 75 years. The company sells American Family-brand products, primarily through exclusive agency owners in 19 states. American Family Insurance also includes CONNECT, powered by American Family Insurance, Homesite and Main Street America Insuranceand has approximately 11,000 employees nationwide.