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Investing.com -- AM Best has revised its outlook on Wisconsin-based mutual insurer Society Insurance to negative from stable, while affirming its financial strength rating of A-minus (Excellent) and long-term issuer credit rating of "a-minus" (Excellent).
The rating agency cited five years of underwriting losses and continued pressure on profitability in 2023 and 2024 as reasons for the outlook change.
AM Best pointed to deteriorating performance metrics resulting from higher catastrophe claims and large loss experience. The insurer’s combined ratio has exceeded breakeven in four of the past five years and now stands above the industry composite average.
Society Insurance has implemented corrective measures to address these issues, including rate increases and underwriting changes. While its loss and loss adjustment expense ratios remain comparable to peers, these actions aim to narrow the losses.
The outlook could return to stable if these corrective measures lead to improvement in underwriting and capital generation in the remainder of 2025 and early 2026, according to AM Best.
Society Insurance wrote $293.2 million in direct premiums in 2024, slightly down from $294.2 million in 2023. Its combined ratio worsened to 109.3% last year from 108.5% in 2023, according to S&P Capital IQ data.
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