A.M. Best Affirms ‘A’ for Main Street America; Upgrades Grain Dealers

A.M. Best has affirmed the financial strength rating of “A” (Excellent) of super regional property/casualty insurance carrier, The Main Street America Group, and its five wholly owned subsidiaries: NGM Insurance Co., MSA Insurance Co., Main Street America Assurance Co., Old Dominion Insurance Co. and Great Lakes Casualty Insurance Co. The outlook for all ratings is stable.

According to A.M. Best, the “A” rating reflects Main Street America’s excellent risk-adjusted capitalization, trend of favorable operating performance, diversified product offerings and established regional presence along the East Coast. The rating also considers the financial flexibility afforded by its mutual holding company, Main Street America Group Mutual Holdings Inc.

A.M. Best has also upgraded the financial strength rating of new Main Street America Group affiliate Grain Dealers Mutual Insurance Co. to “A” (Excellent) from “B+” (Good), as well as Grain Dealers Mutual’s issuer credit rating to “a” from “bbb-” The outlook for both ratings has been revised to stable from positive.

According to A.M. Best, the upgrading of Grain Dealers Mutual’s ratings to “A” is a result of the Indianapolis, Ind.-domiciled regional carrier becoming a fully reinsured affiliate of NGM Insurance Co. via a 100 percent quota share agreement effective Jan. 1, 2010. Because Grain Dealers Mutual is affiliated with NGM, it became a member of The Main Street America Group. Main Street America’s affiliation with Grain Dealers Mutual closed in November 2009.

Tom Van Berkel, Main Street America chairman, president and chief executive officer, said the strong ratings from A.M. Best “underscore the solid foundation” of the company.