Insurance company

AM Best assigns credit ratings to manufacturing technology mutual insurance company

OLDWICK, NJ–(BUSINESS WIRE)–AM Best assigned a financial strength rating of A- (Excellent) and a long-term credit rating of “a-” (Excellent) to Manufacturing Technology Mutual Insurance Company (MTM) (Novi, MI). The outlook attributed to these Credit Ratings (ratings) is stable.

The ratings reflect the strength of MTM’s balance sheet, which AM assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

MTM’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is valued at the highest level where AM Best expects it to be sustained in future years. to come. The valuation of the balance sheet also takes into account the low dependence of the company on reinsurance and the still favorable evolution of the reserves.

MTM delivered an adequate level of operating performance, with most five-year operating results outperforming the workers’ compensation composite. The company’s operating results are skewed due to the large policyholder dividends the company pays with dividends over the past five years amounting to $22.9 million, which was more than 60% of the company’s policyholder surplus in December 2021. However, these dividends support strong retention of MTM’s policyholders. MTM has limited business diversification as a single line WC insurer with geographic focus and customer focus. The company is licensed only in Michigan and primarily underwrites manufacturing entities, print shops, hardware stores, and automotive dealerships. This leaves the company vulnerable to potential court, legislative, or regulatory changes in the Michigan toilet market. MTM’s risk management capabilities are deemed appropriate for the company’s risk profile.

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 relevant 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 more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.