AM Best affirms American Family's 'A' financial strength rating and stable outlook

AM Best affirms American Family's 'A' financial strength rating and stable outlook

AM Best affirmed American Family Insurance's 'A' (Excellent) financial strength rating, the third highest of their 13 ratings, for the 22nd consecutive year. It also affirmed the issuer credit rating of 'a+', the fifth highest of their 21 ratings, for the seventh year in row. All ratings were assigned a "stable" outlook.

AM Best credit rating services assesses the creditworthiness of and/or reports on thousands of insurance companies worldwide. Its credit ratings are independent, indicative and interactive. 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) beyond the focus on policyholder claims.

These ratings for American Family Insurance reflect the company's operating performance, balance sheet strength (which AM Best assesses as very strong), favorable business profile and appropriate enterprise risk management.

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

AM Best notes American Family has seen improvement in its operating results and loss and expense ratios due to its commitment to restoring profitability through extensive underwriting actions and by focusing on profitable growth in its core segments.

In its analysis, AM Best also acknowledged the sale of The General- expected to close in the fourth quarter of 2024 - will significantly improve capital levels and provide financial flexibility for strategic initiatives being undertaken.

The affirmed ratings include American Family Insurance, Homesite, Main Street America Insurance, and CONNECT, powered by American Family Insurance. The ratings of The General remain unchanged pending closing of the sale.

Concurrently, AM Best also affirmed the "A" financial strength rating and 'a+' issuer credit rating of American Family Life Insurance Company.

See this linkto access the AM Best news release about the American Family Insurance Group ratings and more detailed explanations.

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About the American Family Insurance Group
American Family Insurance Group, 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. 243 on the Fortune 500 list. The Group 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 group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance Group also includes CONNECT, powered by American Family Insurance, The General, Homesite and Main Street America Insurance and has approximately 12,000 employees nationwide.