The downgrade of American Family Life reflects the impact of the rating change of the property/casualty group and the company's overall decline in risk-adjusted capital, driven by additional investments in common stocks and the volatility in net income. The A (Excellent) rating continues to recognize the strong marketing and distribution presence in the Midwest, good asset quality, favorable level of capitalization and the improvement in earnings from insurance operations.
The group maintains a sound capital position at its current rating level and a well-established regional market presence as a leading personal lines insurer in the Midwest. The group operates in 17 states, primarily in the Midwest, and offers a broad range of products such as personal automobile, homeowners, farmowners, inland marine, commercial multi-peril, personal and commercial umbrella, fire and allied lines through its exclusive agency base of approximately 4,000.
The financial strength rating of A (Excellent) applies to the following members of American Family Insurance Group:
-- American Family Mutual Insurance Company
-- American Family Insurance Company
-- American Standard Insurance Company of OH
-- American Standard Insurance Company of WI
-- American Family Life Insurance Company
The following debt rating has been affirmed: American Family Financial Services, Inc.
---- AMB-1 on commercial paper program
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.
CONTACT: A.M. Best Co., Oldwick Public Relations: Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908-439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts: William Decker, 908-439-2200, ext. 5423 rick.decker@ambest.com or Andrew Gold, 908-439-2200, ext. 5487 andrew.gold@ambest.com URL: http://www.businesswire.com