Market Overview

A.M. Best Revises Outlooks to Stable for Farmers Mutual Insurance Company of Michigan


A.M. Best has revised the outlooks to stable from negative and
affirmed the Financial Strength Rating of C++ (Marginal) and the
Long-Term Issuer Credit Rating of "b" of Farmers Mutual Insurance
Company of Michigan (FMIBC) (Coldwater, MI).

The ratings reflect FMIBC's balance sheet strength, which A.M. Best
categorizes as adequate, as well as its weak operating performance, very
limited business profile and marginal enterprise risk management (ERM).

The revised outlooks reflect improved operating results and expansion of
key ERM capabilities, such as policyholders' surplus that has stabilized
at a level meaningfully above the state-mandated $1 million. Some
uncertainty exists in FMIBC's prospective operating performance due to
improved results in 2017, which contrast sharply with historical
patterns observed as recently as 2016. The ratings are supported by
risk-adjusted capitalization that has strengthened since 2015, the year
it merged with another Michigan insurance carrier.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
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