Financial stability is a top priority when choosing a work comp insurance carrier. AM Best, a global credit rating agency that specializes in the insurance industry, helps deliver that reassurance. An AM Best rating is a valuable indicator of an insurance company’s financial strength and stability.
Why does an AM Best rating matter?
When choosing a work comp insurance carrier, always consider the company’s AM Best rating as a key factor in your decision-making process.
Agents benefit from increased client confidence, reduced risk – and a competitive advantage. Further, policyholders get peace of mind, knowing that their carrier of choice can follow through financially on claims.
Does MEM have an AM Best rating?
AM Best affirms MEM’s financial stability with a Financial Strength Rating of A – (Excellent) with a Stable Outlook. This assessment means MEM has an excellent ability to meet financial obligations. Additionally, it highlights that changing market conditions are likely to have little to no impact on this.
How does MEM earn this rating?
MEM has earned a rating of A – (Excellent) every year since 2004. AM Best cites MEM’s very strong balance sheet, adequate operating performance, and appropriate enterprise risk management as some of the reasons for the strong rating profile.
MEM also maintains a Financial Size Category Rating of IX. This is awarded to companies with surplus between $250 million and $500 million. This category rating allows MEM to meet the threshold for writing business for policyholders with certain financial requirements. As a result, MEM’s financial outlook remains strong.
A clear vision backed by financial strength
Financial strength allows MEM to remain invested in a clear vision: to make more businesses in the region safer and stronger.
“The AM Best assessments demonstrate our strength and expertise as a leading workers compensation provider,” Roger Walleck, MEM President and CEO said. “They are a reflection of our balance street strength which has been a hallmark of our business for decades now.”
Introducing new Underwriting Entities
In a separate assessment, AM Best reviewed the coming Underwriting Entities. This is done through a Preliminary Credit Assessment (PCA). A PCA serves as an early evaluation as these four underwriting entities take shape.
Effective Jan. 1, 2025, the underwriting entities will realize the benefit of a group rating.
“The rating is a stamp of approval that we are financially sound, and this will only widen the reach of our agent network and ability to write new business,” Andy Ribaudo, MEM Chief Financial Officer said.
The AM Best rating and preliminary assessment only add to our strong foundation as we become a private mutual insurance company in 2025.
For the latest Best’s Credit Rating, access AM Best .
For the full press release “AM Best Assigns Preliminary Credit Assessment to Previsor Insurance Co., MEM Protect Insurance Co., MEM Shield Insurance Co. and MEM Secure Insurance Co.” click here.