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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Revises Issuer Credit Rating Outlook to Negative and Affirms Credit Ratings of Hastings Insurance Company

AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Hastings Insurance Company (Hastings) (Hastings, MI). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect Hastings’ balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revised outlook to negative from stable for the Long-Term ICR reflects the ongoing pressure given the volatility in the company’s operating results in recent years, due to an abnormal level of catastrophe losses in operating states in the Midwest. Hastings’ operating performance in recent years and through September 2024, were challenged by higher-than-expected frequency and severity of weather-related events. Consequently, Hastings has seen a combined ratio above breakeven in recent years. The volatility in the company’s results continued through third-quarter 2024, and was fueled by the severity of weather-related losses driven by inflationary pressures. Hastings has a long-standing presence in its operating territories in the Midwest and an experienced management team. However, the company remains susceptible to frequent and severe weather-related losses and potentially regulatory, as well as economic challenges.

Hastings’ management is addressing the underwriting volatility through rate increases, re-underwriting of its book of business, inflation guard adjustments, non-renewing unprofitable accounts and in-depth loss control inspections. AM Best expects that these actions will take time to reverse the negative trends and for the metrics to return to its historical norms; however, given the absence of sustained improvements, there could be further negative ratings action.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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