AM Best affirms American Family's financial strength ratings

AM Best affirms American Family's financial strength ratings

AM Best has affirmed American Family Insurance's 'A' (Excellent) financial strength rating, the third highest of its 13 ratings, for the 24th consecutive year. It also affirmed the company's 'a+' (Excellent) long-term issuer credit rating, the third highest of its nine ratings, for the ninth year in row. All ratings carry a stable outlook.

AM Best credit rating services assess the creditworthiness of and/or reports on thousands of insurance companies worldwide. Financial strength ratings focus on an insurer's ability to meet its obligations to policyholders, primarily its claims-paying ability. Issuer credit ratings assess the insurer's overall creditworthiness and ability to meet financial obligations (such as debt and interest payments).

The ratings of American Family reflect its balance sheet strength, which AM Best assesses as very strong, as well as its operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The ratings are also supported by American Family's risk-adjusted capitalization, which AM Best considers to be at the strongest level. Operating performance reflects significantly improved underwriting results in 2025, continued underwriting profitability through the first half of 2026 and steady investment income.

AM Best notes that American Family's product and geographic mixes, as well as distribution channels, have evolved through mergers, acquisitions and disposition activities over the last decade, further supporting the company's business profile assessment.

At the same time, AM Best also affirmed the 'A' financial strength rating and 'a+' issuer credit rating (both Excellent) of American Family Life Insurance Company (AFLIC). The ratings of AFLIC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its operating performance, business profile and appropriate ERM. AM Best reports AFLIC has shown consistent profitability on operating and net income levels.

AM Best has distinguished American Family as a "Standing the Test of Time" company, which is represented by having a financial strength rating of 'A' or better for at least 75 years.

See this link to access the AM Best news release about American Family's ratings and more detailed explanations of ratings.

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About American Family Insurance
American Family Insurance, based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance is the nation's 12th-largest property/casualty insurance company, ranking No. 226 on the Fortune 500 list. American Family has a current 'a+' credit rating through AM Best, and has distinction as a "Standing the Test of Time" company, which is represented by having an AM Best financial strength rating of 'A' or better for at least 75 years. The company offers American Family-brand products through a network of exclusive agency owners as well as nationwide through key strategic partnerships. American Family Insurance also includes Homesite and Main Street America. The company has approximately 10,500 employees nationwide.