AM Best assigns excellent ratings to Eden Insurance Company and other IMT members

In Oldwick, New Jersey, on April 11, 2025, AM Best assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) to Eden Insurance Company. This is part of a broader assessment affecting the members of IMT Insurance Companies, including IMT Insurance Company and Wadena Insurance Company, allowing for a comprehensive evaluation of their financial health. Previously, on August 30, 2024, these companies faced a downgrade of their ratings due to a significant surplus position decline associated with the heightened frequency and severity of weather-related events impacting their financial stability. Notably, the inflation rates also played a crucial role in amplifying the industry's challenges, resulting in substantial underwriting losses for IMT Insurance Companies over the past couple of years. AM Best's upgraded ratings signify the successful execution of various capital management initiatives aimed at revitalizing their capital structure and enhancing risk-adjusted capitalization, which, in turn, addresses earlier downward pressures that led to their previous rating downgrades. The credit ratings assigned to these companies reflect a combination of their balance sheet strength, assessed to be very strong by AM Best, alongside adequate operating performance metrics that remain neutral. However, it's essential to note that the assigned ratings come with a negative outlook, indicating potential volatility due to past underwriting losses and fluctuations in their policyholders' surplus.