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Mutual Assurance On Prestigious List


For 116 years, AM Best has been issuing Financial Strength Ratings or opinions on the ability of individual insurers to pay claims on the coverage they have underwritten. To make the "Standing The Test of Time 2022" list, an insurance provider must have maintained an A or A+ rating for at least 75 years. This year, only 68 Insurance providers across the country made the grade.


The original rating system, implemented in 1906, was devised by the company's founder, Alfred M. Best, and has been modified over the years to account for changing business practices. The rating scale used today was adopted in 1932.


How The Rating Is Determined


AM Best issues a Best's Credit Rating (BCR) that looks at financial strength and issuer credit. The financial strength rating indicates Best's assessment of an insurer's ability to meet its obligations to policyholders. There are six secure ratings, ranging from the highest A++ to B+, and 10 vulnerable ratings, ranging from B to S, with the lowest indicating a rating was suspended.


Best's short-term credit ratings reflect the company's ability to pay commitments due in less than a year, and they range from a high of AMB1+ to a low of D (in default). Long-term credit ratings reflect the company's ability to pay its commitments maturing in more than a year, and range from AAA (exceptional) to D (in default).


Mutual Assurance was first rated in 1922 and received its first A rating in 1935 - a level it has maintained in the ensuing 87 years.


"Since 1794, Mutual Assurance has been committed to providing Virginians with quality insurance protection at a reasonable cost. Being A rated or better with AM Best for 87 years is a testament to our long-standing financial strength and commitment to putting our members first," says Jeff Wrobel, President of Mutual Assurance.

 

To see the 2022 Standing The Test of Time List, click here.

 



Sources: Investopedia, AMBest,





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