AM Best has revised the outlook to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Michigan Millers Mutual Insurance Company (Michigan Millers) (Lansing, MI).

Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Western National Mutual Insurance Company (Edina, MN) and its affiliates, collectively known as Western National Insurance Pool (Western National). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of companies).

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

The ratings of Western National reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM.

The positive outlook for Michigan Millers is based on its planned inclusion in the Western National Insurance Pool effective Jan. 1, 2026, which will result in Michigan Millers receiving a pooled rating with Western National. This could result in Michigan Millers’ FSR being upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICR being upgraded to “aa-” (Superior) from “a” (Excellent). Consequently, this is the reason for the positive outlook on both Michigan Millers’ FSR and Long-Term ICR at its current rating level.

Michigan Millers’ balance sheet strength assessment of very strong is based on its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), moderate underwriting leverage, solid liquidity measures, favorable underwriting and operation cash flows, conservative investment risk profile, and favorable loss reserve development trends. The company’s operating performance assessment of adequate is based on consistently solid underwriting results and operating performance trends over the most recent five-year period with solid results continuing through year-to-date 2025.

AM Best views Michigan Millers’ business profile as limited, based on its geographic risk concentration as a commercial casualty writer in Michigan, New York and Minnesota. The company’s ERM is assessed as appropriate, based on sound risk management techniques, a risk-aware culture, and a comprehensive reinsurance program. Lastly, Michigan Millers receives one Long-Term ICR notch of rating lift from its affiliation with Western National, which provides implicit and explicit support in many facets of its operations.

Western National’s balance sheet strength assessment of strongest is based on its strongest level of risk-adjusted capitalization, as measured by BCAR, modest underwriting leverage, strong liquidity measures, strong underwriting and operation cash flows, conservative investment risk profile, and consistently favorable loss reserve development trends. The group’s operating performance assessment of strong is based on consistently strong underwriting results and operating performance trends over the most recent five-year and 10-year periods, with strong results continuing through year-to-date 2025.

Western National’s business profile is viewed as neutral, based on its well-diversified geographic representation and product risk spread. The group is a diversified super-regional carrier with a focus on profitable niches in its commercial and personal lines segments. Western National’s ERM is viewed as appropriate, based on its robust risk management framework that identifies and estimates the potential impact of all enterprise risks (market, credit, underwriting, strategic and liquidity). The group’s ERM is enhanced by a comprehensive reinsurance program with very strong partners, which helps mitigate catastrophe exposures to manageable levels.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for Western National Insurance Pool affiliates:

• Western National Mutual Insurance Company
• Western National Assurance Company
• Pioneer Specialty Insurance Company
• Umialik Insurance Company
• American Freedom Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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