A.M. Best Co. has placed the financial strength rating of B (Fair) of Iowa Mutual Group (De Witt, Iowa), under review with positive implications.
The rating action acknowledges the agreement between Iowa Mutual
Group and Motorists Insurance Group (Columbus, Ohio) to form a strategic alliance. Under the agreement, Iowa Mutual will become a participant in Motorists Insurance Group’s inter-company pool. Furthermore, Motorists Insurance will have majority control on Iowa Mutual’s board of directors.
A.M. Best views this transaction favorably for Iowa Mutual as it will
provide it with access to additional products and increased financial
security. This will also facilitate Motorists Insurance’s entrance into the Iowa market by providing it with a strong agency presence. This strategic alliance will have no impact on the financial strength of Motorists Insurance.
The agreement between Iowa Mutual and Motorists Insurance is pending regulatory approval from Iowa’s Insurance Division. The rating will remain under review until approval is received from the Iowa Insurance Division, as well as Iowa Mutual policyholders. Once approvals are received A.M. Best will re-evaluate the structure of Iowa Mutual and likely assign the financial strength of rating of A (Excellent) of Motorists Insurance.
The Iowa Mutual Group consists of two domestic property/casualty
insurance companies, Iowa Mutual Insurance Company and its wholly owned subsidiary, Iowa American Insurance Company.
Business is conducted through approximately 400 independent agents
throughout the operating territory of Illinois, Iowa and Nebraska.
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