AM Best has revised the outlook to stable from negative for the long-term issuer credit ratings (long-term ICR) and affirmed the financial strength rating (FSR) of A (Excellent) and the long-term ICRs of “a+” (Excellent) of Westfield Insurance Company and its affiliates, collectively known as Westfield Group.

The outlook of the FSR is stable. All companies are wholly owned subsidiaries of Ohio Farmers Insurance Company, the ultimate parent, and are domiciled in Westfield Center, Ohio.

The ratings reflect Westfield’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management, AM Best said.

The revised Long-Term ICR outlook for Westfield reflects improvement in its operating results through year-end 2024 and the projected financial metrics. The combined ratio has improved and returned to sub-100 for 2024, driven by pricing actions and revisions to policies terms, as well as strategic re-balancing of growth toward more-profitable lines, including surplus market opportunities.

AM Best said a return to positive net income in 2024 was supported by strong investment results and improvement in net underwriting results despite higher-than-expected catastrophe losses from convective storms and two hurricanes. Westfield’s risk-adjusted capitalization remains at the strongest level, as measured by Best Capital Adequacy Ratio (BCAR). Improvement in operating performance led to surplus growth in 2024 following several years of decline.

Westfield Insurance Company reported net income of $143 million in 2024, according to financial results submitted to NAIC. Westfield Insurance Company saw net income of $16 million in 2023, and in 2022 the insurer experienced net loss of $34 million.

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AM Best has affirmed the FSR of A (Excellent) and the long-term ICR of “a” (Excellent) of Church Mutual Insurance Company, S.I. The outlook assigned to these Credit Ratings is negative.

These ratings apply to Church Mutual and its wholly owned subsidiaries including CM Regent Insurance Company, CM Vantage Specialty Insurance Company and CM Indemnity Insurance Company. The ratings of the group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

In the past few years, many property/casualty insurers faced multiple challenges: increased claims and claim costs, a challenging judicial environment in some states (social inflation) and catastrophic events that produced a record number of claims. These challenges impacted Church Mutual as well, AM Best said. However, beginning in 2023, Church Mutual took strategic, proactive measures that have laid a foundation to support balance sheet strength, consistent profitability, stable earnings, a diversified risk portfolio and effective enterprise risk management practices. Significant progress has been made to date.

“We are pleased with the positive impact of these measures,” said Alan Ogilvie, Church Mutual’s president and CEO. “We are also pleased with our year-over-year surplus growth, strategic de-risking and impactful efforts supporting rate adequacy. We remain committed to our financial strength, which supports our customers and their communities.”