AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bb+” (Fair) of Germania Farm Mutual Insurance Association and its subsidiaries: Germania Fire & Casualty Company, Germania Insurance Company and Germania Select Insurance Company. Collectively, these companies comprise Germania Mutual Group (Germania).

Concurrently, AM Best has placed under review with negative implications the FSR of B (Fair) and the Long-Term ICR of “bb+” (Fair) of Germania Property & Casualty Insurance Company, a wholly owned subsidiary of Germania Farm Mutual Insurance Association.

Additionally, AM Best has placed under review with negative implications the FSR of B (Fair) and the Long-Term ICR of “bb+” (Fair) of Germania Life Insurance Company. All companies are domiciled in Brenham, TX.

These Credit Ratings (ratings) have been placed under review with negative implications given AM Best’s concerns with recent surplus volatility arising from repeated significant underwriting and operating losses, and the resulting impact on the group’s balance sheet strength. Management has communicated to AM Best its intent to follow through with various proposed strategies, which will be aimed at improving underwriting profitability and consistency, as well as strengthening the group’s capital position and ultimately improving the level of risk-adjusted capitalization and other key balance sheet strength measures.

The ratings are expected to remain under review with negative implications until Germania executes its capital improvement strategies and AM Best has assessed the impact on Germania’s credit rating fundamentals.

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.

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