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Agrinational Insurance Company has had its financial strength rating of A- (Excellent) and long-term issuer credit ratings of “a-” affirmed by A.M. Best.
The outlook of these credit ratings is stable.
The ratings reflect Agrinational and its subsidiaries’ balance sheet strength, which A.M. Best categorises as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
A.M. Best said the affirmation reflected the strongest measures of risk-adjusted capitalisation and implicit support provided by the group’s parent, Archer Daniels Midland Company.
The operating performance of its insurance entities have been adequate due to the low cost-expense structure and focus on enterprise risk management, according to A.M. Best.
This has resulted in a positive net income for Agrinational’s subsidiaries for the past five years.
In May 2017, Agrinational sold its subsidiary, ADM Crop Risk Services, to Validus Holdings, resulting in a significant reduction of its premium volume. This reshaped the strategic alignment of insurance operations in relation to the ultimate parent from a captive with third-party business to that of a pure captive.