AM Best revises ISMIE ratings to stable from negative

By Isha Marathe

March 28 - (The Insurer) - AM Best has revised the outlooks to stable from negative and affirmed the financial strength rating of A-minus and the long-term issuer credit rating of a-minus of Chicago-based ISMIE Mutual Insurance Company and ISMIE Indemnity Company.

The revision of the outlooks reflects steady improvement in ISMIE’s operating performance, driven by rate and underwriting actions as well as expense management, as it has executed on various strategic initiatives to return to profitability, AM Best said.

Additionally, the net investment income drove operating earnings after a period of constraint in prior years from the group’s conservative investment portfolio. The group's plans to expand into new territories and roll out new products, combined with modest expansion within its core medical professional liability book, resulted in another year of premium growth in 2024, contributing to balance sheet strength, AM Best said.

"Due to ISMIE’s conservative capital management and prudent reserving, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, and overall balance sheet strength each remain at the strongest level, absorbing underwriting and overall economic volatility, as well as execution risks associated with the group’s business plan," AM Best said.