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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 Downgrades Credit Ratings of Oregon Mutual Group Members

AM Best has downgraded the Financial Strength Rating to B- (Fair) from B++ (Good) and the Long-Term Issuer Credit Ratings to “bb-” (Fair) from “bbb” (Good) of Oregon Mutual Insurance Company and Western Protectors Insurance Company, which are domiciled in McMinnville, OR and collectively referred to as Oregon Mutual Group. The outlooks of these Credit Ratings (ratings) have been revised to negative from stable.

The ratings reflect Oregon Mutual Group’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The rating actions reflect the continued deterioration in Oregon Mutual Group’s balance sheet metrics, which has been primarily driven by continued surplus erosion in three consecutive years that continued into first-quarter 2025. The surplus decline in 2025, was a result of continued adverse loss reserve development from several large claims, impacted by economic and social inflation, in addition to smoke related claims attributed to the California wildfires. Through first-quarter 2025, the group’s surplus position declined by $6.5 million (12.8%) which led the overall risk-adjusted capitalization to decline to adequate levels. Despite Oregon Mutual Group’s undertaking initiatives to improve profitability, efforts have not gained meaningful traction and have not effectively insulated the group’s condition, which led to its ERM assessment being lowered to marginal.

Oregon Mutual Group’s operating performance is assessed as marginal due to volatile underwriting results in recent years, which have been driven by economic and social inflations. While the group has undertaken initiatives to improve profitability, recent results have trailed its peer composite. Oregon Mutual Group’s underwriting and operating ratios, as well as its return-on-revenue and return-on-equity measures, compare unfavorably to the composite averages. The group’s business profile is assessed as limited, reflecting its focus on commercial lines, with over half its book in California on a direct written premium basis. California has historically had a challenging regulatory environment that has impacted the group’s results in recent years.

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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