AM Best Withdraws Credit Ratings of RAM Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of RAM Mutual Insurance Company (RAM) (Esko, MN). The outlook of the FSR is stable, while the outlook of the Long-Term ICR is negative. Concurrently, AM Best has withdrawn these Credit Ratings (ratings) as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect RAM’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The rating affirmations reflect the successful implementation of its capital-raising program to stabilize policyholder surplus through the issuance of $12.4 million of Guaranty Certificates to several township municipal organizations in Minnesota. Through this action, RAM’s risk-adjusted capitalization was raised to the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), which supports the company’s very strong balance sheet assessment. The company has fully placed its 2025 reinsurance program, which includes an additional limit to protect policyholder surplus from catastrophe events. RAM also has implemented several underwriting initiatives including coverage changes, premium rate increases and agency management actions to limit new business growth, which is expected to contribute to improving operating results.

Despite raising adequate capital, net and gross underwriting leverage metrics, increased reinsurance dependence and net catastrophe retention continue to pressure RAM’s balance sheet as reflected by maintaining the negative outlook for the Long Term ICR.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250115527874/en/

Josie Novak
Financial Analyst
+1 908 882 2207
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Janet Hernandez
Senior Financial Analyst
+1 908 882 1890
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

Source: AM Best

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