AM Best Withdraws Credit Ratings of MutualAid eXchange

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of B+ (Good)
and the Long-Term Issuer Credit Rating of “bbb-” of MutualAid eXchange
(MAX) (Overland Park, KS). The outlook of these Credit Ratings (ratings)
is stable. Concurrently, AM Best has withdrawn the ratings of MAX at the
company’s request to no longer participate in AM Best’s interactive
rating process.

The ratings reflect MAX’s balance sheet strength, which AM Best
categorizes as strong, as well as its marginal operating performance,
limited business profile and marginal enterprise risk management (ERM).

MAX’s balance sheet strength reflects risk-adjusted capitalization at
the strongest level and a conservative investment portfolio that is
largely comprised of fixed-income holdings, which are somewhat offset by
its elevated underwriting leverage relative to the composite and limited
financial flexibility. The company’s operating performance has been
volatile over the past several years, driven mostly by weather-related
events. MAX maintains a limited business profile that reflects its
product line concentration in homeowners and farmowners operating as a
reciprocal insurer that provides insurance products to faith-based
communities and mutual aid ministries. Despite expanding into new states
in recent years, MAX’s geographic concentration in the Midwest and
Mid-Atlantic states exposes its results to weather-related losses. The
company’s ERM framework is developing; however, certain key elements
have proven inadequate given the continued volatility in underwriting
results.

This press release relates to Credit Ratings that have been published
on AM 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 see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Maurice Thomas
Senior Financial Analyst
+1
908 439 2200, ext. 5794
maurice.thomas@ambest.com

Michelle Baurkot
Director
+1 908 439 2200,
ext. 5314
michelle.baurkot@ambest.com

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
james.peavy@ambest.com