AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Marysville Mutual Insurance Company (Marysville) (Marysville, KS).

The Credit Ratings (ratings) reflect Marysville’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised rating outlooks to positive are the result of favorable trends in the company’s balance sheet strength. This is due to consistent appreciation of policyholder surplus levels, declining leverage ratios, favorable reserve development and risk-adjusted capitalization. Overall, Marysville’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the strongest level. Marysville’s strong operating performance has resulted in robust surplus appreciation over the latest five years during which surplus has nearly doubled. Marysville’s surplus growth has led to consistent improvement in the company’s leverage and liquidity ratios, and risk-adjusted capitalization. However, as a single-state property insurer with geographic concentration in Kansas, Marysville’s limited scale of operations drive its limited business profile assessment. Lastly, ERM is appropriate due to consistent measurement and monitoring of the company’s main risks and reinsurance protection to mitigate its exposure to natural catastrophes.

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