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AM Best upgrades AmericanAg outlook to positive
AM Best kept AmericanAg’s Financial Strength Rating at A (Excellent) and said underwriting gains and higher investment income helped improve performance.
AM Best revised the outlook on American Agricultural Insurance Company, known as AmericanAg, to positive from stable for its Long-Term Issuer Credit Rating, while maintaining the Financial Strength Rating at A (Excellent). The agency also kept the company’s Long-Term ICR at “a” (Excellent), with the outlook for the FSR remaining stable, according to Reinsurance News.
AM Best said the positive outlook reflects continued progress in AmericanAg’s operating performance. It pointed to improvements in underwriting results and rising investment income as key drivers of stronger financial results in recent years.
The rating agency attributed the underwriting improvement to higher rates, stronger management of risks and exposures, and relatively favorable weather conditions. While weather-related events have affected earnings, AM Best said those losses have not weakened AmericanAg’s capital position.
AM Best also highlighted steps to strengthen the revenue base, including a broader mix of business and increased participation in direct crop insurance, as well as expansion of non-risk-bearing activities. It added that AmericanAg is on course to deliver profitable results for the first six months of 2026, with 2024 and 2025 described as the strongest years in the company’s history despite large loss payouts.