AM Best Upgrades Credit Ratings of Missouri’s Columbia

AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Columbia Mutual Insurance Company and its affiliates, collectively referred to as Columbia Insurance Group (Columbia). (See below for a detailed list of companies.) The outlook of these Credit Ratings (ratings) has been revised to stable from positive. All companies are headquartered in Columbia, Missouri.

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

The ratings upgrade reflects the revision in the operating performance building block assessment to adequate from marginal in response to sustained performance in key financial metrics that has resulted in a greater alignment with other adequately assessed peers.

Results in recent years, as well as the first quarter of 2026, have benefited from enhanced pricing sophistication, refined underwriting appetite and management of catastrophe-prone exposures. The upgrade also reflects recent strategic initiatives, which have the potential to bring about long-term improvements in key operating performance metrics, helping to ensure continued alignment with the adequate assessment level.

Columbia’s balance sheet strength assessment is supported by risk-adjusted capitalization being maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), its high-quality investment portfolio with solid liquidity and favorable underwriting leverage metrics.

Loss reserve development has been generally favorable on both an accident and calendar year basis, despite modest adverse development reported for the 2024 and 2025 calendar years. The business profile reflects Columbia’s long-standing regional market presence that includes a diversified blend of products targeting small and middle market commercial accounts. The appropriate ERM assessment reflects Columbia’s formalized risk appetite and tolerance statements maintained for key areas, aided by a comprehensive reinsurance program.

The FSR has been upgraded to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) with the outlooks revised to stable from positive for the affiliates of Columbia Mutual Insurance Company:

• Columbia National Insurance Company
• Association Casualty Insurance Company
• Ozark Specialty Insurance Company

Source: AM Best