AM Best Revises Issuer Credit Rating Outlook to Stable for FMNE Insurance Company
AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of FMNE Insurance Company (FMNE) (Lincoln, NE). The outlook of the FSR is stable. In addition, AM Best has revised the outlook to stable from negative and affirmed the Long-Term Issue Credit Rating of “a-” (Excellent) on the $100 million, 9% surplus notes, due 2044.
The Credit Ratings (ratings) reflect FMNE’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The revised Long-Term ICR outlook for FMNE to stable reflects meaningful improvement in the company’s policyholder surplus in recent years, following deterioration in 2022, and to a lesser extent, in 2023, due primarily to weather-related losses. The substantial increase in the company’s surplus during 2024 was mainly influenced by the issuance of $100 million surplus note, as well as positive earnings. However, the sizable increase in surplus in 2025 and first-quarter 2026 was primarily driven by positive earnings, and to lesser degree, capital gains. This favorable trend is expected to continue due to a series of profitability initiatives implemented by management in recent years.
