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A.M. Best Affirms Ratings of Rural Community Insurance Company

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A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a+” of Rural Community Insurance Company (RCIC) (Anoka, MN). The outlook for both ratings is stable.

The ratings reflect RCIC’s strong level of risk-adjusted capitalization, historically profitable operating performance, its position as one of the market leaders within the multi-peril crop insurance (MPCI) industry and management expertise in the highly specialized MPCI marketplace. Additionally, RCIC’s balance sheet strength is protected by an aggregate stop-loss reinsurance treaty, which minimizes the potential impact from severe underwriting losses. The rating also recognizes significant financial flexibility and operating liquidity afforded through the company’s ultimate parent, Wells Fargo & Company [NYSE:WFC], one of the largest publicly traded financial services organizations in the United States.

The positive rating factors are somewhat offset by RCIC’s concentrated product offering and heavy reliance on reinsurance, which is somewhat mitigated by the high credit quality of its reinsurers, including the Federal Crop Insurance Corp. Additional offsetting factors are the potential for underwriting volatility due to operational risk from a change in the agricultural marketplace or in either the agricultural crop insurance program or farm bill that adversely impact the company’s business plan.

Negative rating action could result if RCIC’s risk-adjusted capitalization or operating performance falls markedly short of A.M. Best’s expectation.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at

Key insurance criteria reports utilized:

  • Catastrophe Analysis in A.M. Best Ratings
  • Evaluating Non-Insurance Ultimate Parents
  • Risk Management and the Rating Process for Insurance Companies
  • Understanding BCAR for Property/Casualty Insurers

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit

Copyright (c) 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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