Published:
A.M. Best Affirms Ratings of Agrinational Insurance Company
OLDWICK, N.J. - (BUSINESS WIRE) - A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit rating of "a-" of Agrinational
Insurance Company (Burlington, Vermont). The outlook for both
ratings is stable.
The ratings reflect Agrinational Insurance Company's strong
capitalization, overall favorable operating performance and strategic
role as a captive insurer of Archer Daniels Midland Company (ADM)
(NYSE:ADM). Net written premium and policyholder surplus each have
exhibited significant growth over the last five years due primarily to
the growth of ADM.
Partially offsetting the favorable rating factors is the high net
retention on property exposures, which has produced some variability in
operating results. Also, as a single parent captive, Agrinational is
exposed to concentration risk since its primary source of business is
from one company. It 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 and barges. Management considers
these investments as long term and a better alignment of the company's
capital structure, while providing stability in investment returns.
A.M. Best remains the leading rating agency of captive insurers rating a
wide variety of more than 200 captives in the United States and
throughout the world.
For current Best's Ratings and independent data on the captive and
alternative insurance market, please visit www.ambest.com/captive.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors, which may have been
considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Gale Guerra, MBA,
908-439-2200, ext. 5069
gale.guerra@ambest.com
OR
Steven
Chirico, CPA, 908-439-2200, ext. 5087
steven.chirico@ambest.com
OR
Public
Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
OR
Rachelle
Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
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