AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of RAM Mutual Insurance Company (RAM) (Esko, MN).
The Credit Ratings (ratings) reflect RAM’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
The outlook revisions to positive from stable reflect improved underwriting and overall operating results in each of the past two years and through the first half of 2026. The improvement in the company’s results was driven by significant rate increases and underwriting initiatives, such as mandatory deductibles and stricter underwriting guidelines following large losses between 2021 and 2023. AM Best expects the favorable trend in RAM’s operating performance to continue over the intermediate term, although results may remain subject to modest volatility from weather-related events.
RAM’s balance sheet strength is assessed as very strong, supported by the strongest levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The very strong balance sheet assessment is supported further by favorable underwriting leverage metrics, strong liquidity and a conservative investment portfolio. The business profile assessment reflects RAM’s geographic concentration in Minnesota, which increases susceptibility to severe weather-related events. RAM’s ERM is assessed as appropriate, reflecting strong internal controls and an active and engaged board of directors that is involved in the risk management process.
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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