AM Best revises outlook to negative for RAM Mutual Insurance Company


OLDWICK, NJ–(BUSINESS WIRE)–AM Best revised the outlook from stable to negative and affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of RAM Mutual Insurance Company (RAM) (Esko, MN).

The credit ratings (ratings) reflect the strength of RAM’s balance sheet, which AM Best rates as very strong, as well as its strong operating performance, limited business profile and appropriate management of business risks.

The negative outlook reflects RAM’s deteriorating operational performance over the past three years to levels that are not closely aligned with other strong rated carriers in this category. The recent deterioration is due to an increased number of catastrophic hail and wind events that resulted in historic losses. Over the past five-year period, average incurred losses and claims expenses have exceeded average earned premiums, resulting in high combined ratios and a decline in RAM’s ranking relative to other other solid carriers.

Although management plans to take various measures to return to profitable underwriting performance, it is uncertain whether or not these measures will be sufficient to return RAM to its historical operating profitability in the medium term. AM Best will continue to monitor the execution of management’s plans and their impact on reducing the pressure on RAM’s operational performance.

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 relevant 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 more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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