A.M. Best Affirms Rating of Foremost Corporation Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A (Excellent) of Foremost Corporation Group (Foremost) (Caledonia, MI). The rating outlook is stable. The rating reflects Foremost's strong risk-adjusted capitalization on a stand-alone basis, solid operating performance, established market position, as well as the advantages associated with being affiliated with Farmers Insurance Group (Farmers) and the mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" synergies created between these two groups. Offsetting factors include Foremost's above-average underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. leverage relative to its peers and significant exposure to weather-related losses. Foremost's strong risk-adjusted capital position is based on its conservative investment risk profile and the catastrophe reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. provided by Farmers. Additionally, the group's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating profitability, derived from its strict underwriting discipline and conservative investment policy, enabled Foremost to produce strong surplus growth over the past five years. The group's elevated underwriting leverage was the result of rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. business from Farmers after its acquisition of Foremost. Net premium leverage is expected to improve through organic surplus growth over the next several years. In addition, Foremost's net exposure to hurricane loss events is substantially reduced by its sound reinsurance program, particularly the catastrophe reinsurance protection from Farmers. Foremost is a leading stand-alone mobile home insurer and currently maintains a competitive advantage in this line of business. Product expansion into specialty lines and substantial cross-selling opportunities with Farmers also provides additional growth opportunities. The financial strength rating of A (Excellent) has been affirmed for the following members of Foremost Corporation Group: --American Federation Insurance Company --Foremost County Mutual Insurance Company --Foremost Insurance Company Grand Rapids, Michigan “Grand Rapids” redirects here. For other uses, see Grand Rapids (disambiguation). Grand Rapids is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 197,800. --Foremost Lloyds of Texas --Foremost Signature Insurance Company --Foremost Property and Casualty Insurance Company For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies and A.M. Best groups, please visit www.ambest.com/pc. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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