AM Best Revises Outlooks to Stable for Missouri Valley Mutual

AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Missouri Valley Mutual Insurance Company (MVMIC) based in Burke, South Dakota.

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

The revision of the outlooks to stable from negative reflects Missouri Valley’s improved operating performance metrics following multiple corrective actions implemented by management. This led to the company reporting its lowest combined ratio since 2016, as well as its largest underwriting income since 2014.

The corrective actions implemented included tightening of underwriting guidelines and multiple rate increases that restored profitability to the company following a period of volatility. MVMIC’s auto line of business produced an underwriting gain for the first time in 10 years while the effects of weather lessened in 2025.

Despite five-year metrics being moderately skewed from the worst storm losses in company’s history during 2022, the company continues well-aligned with peer companies that also have an adequate operating performance assessment. Additionally, MVMIC’s underlying book of business has improved in consecutive years when the effects of weather are segmented out. Based on these factors, pressure on MVMIC’s operating performance assessment has tapered off in the short term.

MVMIC’s adequate balance sheet strength assessment is comfortably positioned with over 20% surplus growth in 2025 and supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). MVMIC’s limited business profile assessment remains appropriate given the company’s status as a single-state writer while the ERM program is appropriate reflecting capabilities that are aligned with the scope and scale of the company.

Source: AM Best