A.M. Best Assigns Ratings to Independent Mutual Fire Insurance Company

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to Independent Mutual Fire Insurance Company (Independent Mutual Fire) (Bridgeview, IL). The assigned outlook is stable.

The ratings reflect Independent Mutual Fire's modest underwriting leverage, recognized market expertise and long-standing presence in the home service fire and burglary market sector. In addition, the company has generated solid investment earnings that have offset underwriting shortfalls in most years.

These strengths are partially offset by Independent Mutual Fire's limited business profile. In addition, the variability in the company's underwriting results has been driven by an elevated expense ratio and lack of economies of scale. Independent Mutual Fire also maintains exposure to fluctuating market values related to its common stock portfolio, which comprises more than a third of its surplus base. However, these concerns are somewhat mitigated by the company's strong capital position.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that 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.

SOURCE: A.M. Best Co.

A.M. Best Co. 
Analysts: 
Michael T. Venezia, 908-439-2200, ext. 5034 
michael.venezia@ambest.com 
or 
Jeff Mango, CPA, 908-439-2200, ext. 5204 
jeffrey.mango@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