AM Best Revises Outlook to Stable for Ohio’s Westfield

AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Westfield Insurance Company and its affiliates, collectively known as Westfield Group (Westfield). The outlook of the FSR is stable. All companies are wholly owned subsidiaries of Ohio Farmers Insurance Company, the ultimate parent, and are domiciled in Westfield Center, Ohio.

The ratings reflect Westfield’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management, AM Best said.

The revised Long-Term ICR outlook for Westfield reflects improvement in its operating results through year-end 2024 and the projected financial metrics. The combined ratio has improved and returned to sub-100% for 2024, driven by pricing actions and revisions to policies terms, as well as strategic re-balancing of growth toward more-profitable lines, including surplus market opportunities.

AM Best said a return to positive net income in 2024 was supported by strong investment results and improvement in net underwriting results despite higher-than-expected catastrophe losses from convective storms and two hurricanes. Westfield’s risk-adjusted capitalization remains at the strongest level, as measured by Best Capital Adequacy Ratio (BCAR). Improvement in operating performance led to surplus growth in 2024 following several years of decline.

Westfield Insurance Company reported net income of $143 million in 2024, according to financial results submitted to NAIC. Westfield Insurance Company saw net income of $16 million in 2023, and in 2022 the insurer experienced net loss of $34 million.

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