AM Best Revises Outlooks to Positive for Columbia Mutual Insurance Company and Its Core Affiliates; Assigns Credit Ratings to Ozark Specialty Insurance Company

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Columbia Mutual Insurance Company (Columbia Mutual), Columbia National Insurance Company and Association Casualty Insurance Company. Concurrently, AM Best has assigned an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) to Ozark Specialty Insurance Company. The outlooks assigned to these Credit Ratings (ratings) is positive. Collectively these companies comprise Columbia Insurance Group (Columbia) and are headquartered in Columbia, MO.

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

The revised outlooks reflect Columbia’s improved operating performance in recent years due to several strategic initiatives, which have started to gain traction. Results in the last two years and continuing through first-quarter 2025, have benefited from enhanced pricing sophistication, refined underwriting appetite, continued book diversification and managing catastrophe prone exposures. Based on these initiatives, prospective results are expected to remain in line with the adequate assessment.

Columbia’s balance sheet strength assessment is supported by risk-adjusted capitalization maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), 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 in 2024, due to case reserve strengthening. 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 formalized risk appetite and tolerance statements maintained for key areas, aided by a comprehensive reinsurance program.

Concurrently, AM Best has assigned credit ratings to Ozark, which was newly incorporated in December 2024, as a wholly owned subsidiary of Columbia Mutual. The assignment of the ratings reflects Ozark’s inclusion into the intercompany pooling agreement, which consists of it receiving a share of premiums, losses and operating expenses effective as of January 1, 2025. Ozark will provide excess & surplus lines products and rate flexibility to complement admitted products offered by Columbia. The group’s rebranding and expanded business profile reflects its dedication towards continuous improvement and product diversification. Columbia Mutual has partnered with a managing general underwriter for specialty insurance carriers to enter the excess and surplus lines marketplace in a disciplined manner utilizing robust technology and enhanced data analytics. Ozark plans to write only a modest amount of premium in 2025, with the intent to gradually expand in the near term.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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