AM Best has revised the Financial Strength Rating to A- (Excellent) and the Long-Term Issuer Credit Ratings to “A-” (Excellent) of IMT Insurance Company and its affiliate, Wadena Insurance Company. These Credit Ratings (ratings) have been placed under review with negative implications. These companies are collectively referred to as IMT Insurance Companies (IMT) and based out of their corporate headquarters in West Des Moines, Iowa. 

The ratings reflect IMT’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The financial strength downgrade reflects the group’s policyholders’ surplus deterioration which in turn impacted risk-adjusted capitalization as measured by Capital Adequacy Ratio (BCAR). The decline in surplus was driven by severe weather-related events, most notably those occurring in April and May. AM Best recognizes the continued focus IMT has been making to return to profitability, and the steps being implemented to reduce volatility in future underwriting results. Since late 2022, IMT has taken measures to recalibrate their book of business including exposure management, adjusting risk appetite and improving rate adequacy.

Further, IMT’s ratings were placed under review with negative implications pending the successful execution of various capital management efforts. AM Best’s expectation is that these strategies will improve the group’s current capital position subject to finalizing terms and regulatory approvals. The ratings will remain under review until AM Best can properly analyze the group’s rating fundamentals following implementation.

IMT Insurance appreciates the confidence shown by AM Best with the ‘A-’ (Excellent) Financial Strength & Long-Term Issuer Credit ratings.

AM Best is the only global credit rating agency with a unique focus on the insurance industry. AM Best's Credit Ratings, which are issued through AM Best Rating Services, Inc., are a recognized indicator of insurer financial strength and creditworthiness. Learn more at ambest.com.

If you are a member of the media seeking additional information, please contact media@imtins.com.

The mission of IMT is to be financially stable so we can fulfill our promises to policyholders and partners. Beginning in 2020, the insurance industry (like so many) experienced rapid change and seismic disruption. The culmination of historic weather events and pandemic-driven inflation created unprecedented challenges for property and casualty insurance carriers to navigate. IMT, like so many other insurance carriers focused on property and casualty business, understood that the status quo was changing.

IMT took a close and careful look at the company’s book of business. IMT recommitted to underwriting Personal Lines and being available to serve policyholders in the state of Iowa. The insurance industry is facing difficult (and unprecedented) times, and IMT must adjust to continue providing its quality insurance solutions. 

Profitability initiatives sometimes include difficult decisions, but they are necessary. Changes IMT implemented included new business moratoriums, revisions to underwriting guidelines and actual cash values for roofs older than five years. 

IMT remains committed to serving policyholders and making strategic decisions that position IMT for a successful future.

If you are a member of the media seeking additional information, please contact media@imtins.com.

The insurance industry, especially regional insurance carriers like IMT Insurance, have experienced significant challenges the past few years that disrupted and impacted business. Factors like severe weather events, coverage changes by reinsurers, and steep cost increases for labor and materials led to carriers adjusting ways in which they were doing business.  In response to these challenging years, IMT Insurance made modifications to strategies and implemented business modifications to be in a better position to serve policyholders and to continue being a strong partner to independent insurance agents. 

These business changes have made an impact, and following positive business indicators, IMT Insurance entered phase one of new business writing opportunities. In addition to Commercial Lines new business opportunities, the first reopen phase lifts moratoriums for selected Personal Lines products. IMT Independent Agents now have more options and opportunities to support clients’ insurance needs.

If you are a member of the media seeking additional information, please contact media@imtins.com.

In the time of continued challenge for the insurance industry, the evolving risk landscape in Minnesota has led IMT Insurance to reset business strategy in this state. IMT is focused on underwriting Commercial Lines casualty products, while pausing property-based risks. While IMT continues to support our policyholders in Minnesota, additional revisions to underwriting guidelines have been made to non-habitational property-based opportunities.

IMT remains licensed to do business in Minnesota during this evaluation and business reset. Certain products continue to be available; connect with an IMT Agent to learn more.   

If you are a member of the media seeking additional information, please contact media@imtins.com.