AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" of GuideOne Mutual Insurance Company (West Des Moines, IA) and its wholly owned subsidiaries collectively referred to as GuideOne Insurance Companies (GuideOne). All companies are domiciled in West Des Moines, IA. See below for a detailed listing of all companies and ratings.
The ratings reflect GuideOne’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The stable outlooks reflect the group’s actions that have steadied capital, improved operating results and reduced volatility in reserve development relative to surplus over the past two rating cycles. Senior management has addressed volatility, in part by exiting the for-profit senior living center segment and placing adverse development cover reinsurance to mitigate future volatility on this line of business. Although favorable catastrophe weather and reserve releases in certain lines of business helped to improve the 2019 loss ratio, the group continues to reduce property exposure in severe convective storm states, while improving policy terms and conditions. While religious institutions, particularly churches, remains the group’s core market focus, it has added specific niche programs and excess and surplus lines programs to provide diversification. AM Best expects prospective results for 2020 to be in line with prior-year results.
AM Best does not expect additional positive rating action at this time. However, negative rating action could occur if GuideOne were to incur any material loss to its risk-adjusted capitalization, or incur material adverse reserve development relative to surplus. Negative rating action also could occur if the group was unable to maintain profitable results under its current set of ERM measures.
The outlooks have been revised to stable from negative and the FSR of A- (Excellent) and the Long-Term ICRs of "a-" affirmed for the subsidiaries of GuideOne Mutual Insurance Company:
- GuideOne Specialty Mutual Insurance Company
- GuideOne America Insurance Company
- GuideOne Elite Insurance Company
- GuideOne National Insurance Company
- GuideOne Property & Casualty 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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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