Westfield Insurance: Understanding Their A.M. Best “A” Rating

Westfield Insurance has held an excellent A.M. Best financial strength rating for over 85 years. This rating demonstrates Westfield’s financial stability and ability to pay out future claims.

This article will explore Westfield’s long history with A.M. Best, what the “A” rating signifies, and why it matters when choosing an insurance provider.

Overview of Westfield’s A.M. Best Rating

• A.M. Best has rated Westfield Insurance “A” (Excellent) or higher for financial strength since 1934.

• This rating reflects Westfield’s balance sheet strength, operating performance, business profile, and ability to meet ongoing obligations.

• Westfield has maintained its “A” rating through various market cycles and financial crises.

• The rating applies to Westfield’s property/casualty insurance subsidiaries like Westfield Insurance Company, Westfield National Insurance Company, and more.

• Westfield is proud of its long-term “A” rating history as a sign of its reliability and stability.

What is A.M. Best?

• A.M. Best Company is a global credit rating agency focused on the insurance industry.

• They analyze the financial strength of insurers based on balance sheet strength, operating results, business profile, and enterprise risk management.

• A.M. Best then assigns rating scales to indicate an insurer’s ability to meet ongoing insurance obligations.

• These Financial Strength Ratings (FSRs) have been provided since 1899 and are a trusted standard in the insurance industry.

Understanding A.M. Best’s Rating Scale

A.M. Best uses an easy-to-understand ratings scale to grade insurers:

• A++ or A+ (Superior) – Highest rating assigned, given to companies with superior financial strength and ability to meet obligations. Less than 2% of insurers receive this exceptional rating.

• A or A- (Excellent) – Excellent financial strength and ability to meet ongoing insurance obligations. Westfield falls into this high-quality category.

• B++ or B+ (Good) – Good financial strength, but may be more vulnerable to economic changes than higher-rated insurers.

• B or B- (Fair) – Fair financial strength, but capacity to meet obligations may be susceptible to adverse economic changes.

• C++ or C+ (Marginal) – Marginal financial security. Vulnerable to adverse changes and dependent on favorable conditions to meet obligations.

• C or C- (Weak) – Weak financial security. Likely inadequate capacity to meet obligations unless favorable circumstances occur.

• D (Poor) – Extremely weak with limited ability to meet current obligations. Assigned to insurers under regulatory supervision.

• E (Under Regulatory Supervision) – Insurer has been placed under an insurance department’s supervision due to financial concerns.

• F (In Liquidation) – Insurer has been placed under court-ordered liquidation due to bankruptcy or insolvency.

The Significance of Westfield’s “A” Rating

By maintaining an “A” or Excellent rating for over 85 years, Westfield demonstrates:

• Financial strength – Westfield has a very strong balance sheet and capital position to fulfill claims obligations even in adverse economic conditions.

• Operating performance – Westfield generates consistent underwriting and operating profits. They have avoided excessive losses that could impact policyholders.

• Market leadership – As the largest insurer based in Ohio, Westfield has a leading niche business profile regionally. Their market knowledge instills confidence.

• Commitment to policyholders – Westfield’s long-term “A” rating reflects their commitment to a conservative operating philosophy that puts customers first.

• Effective risk management – Westfield exhibits strong risk management practices across its investment portfolio and insurance operations. This minimizes uncertainty.

• Resilience – By maintaining an “A” rating through the Great Depression, recessions, financial crises, and other turbulence, Westfield proves its ability to withstand economic shocks.

Why Westfield’s Rating Matters for Policyholders

Westfield’s Excellent “A” rating provides confidence to policyholders that:

• Claims will be paid promptly even in periods of severe economic stress. Westfield has the financial strength to fulfill obligations.

• Conservative business practices reduce uncertainty. Policyholders can rely on a company committed to consistency.

• Renewals and ongoing business are not jeopardized by volatility. Westfield provides stable long-term relationships.

• Wise investment and underwriting practices minimize risks. Customers benefit from a company that effectively manages exposures.

• Fair premiums and excellent service will continue. The rating reflects Westfield’s commitment to putting customers first.

• Peace of mind comes from choosing a resilient company. Customers can have confidence Westfield will be there when needed most.

While the rating should not be the only criteria in choosing coverage, it provides an independent, expert validation of Westfield’s exceptional financial strength and stability.

The Bottom Line: Westfield’s “A” Rating Matters

• Westfield has maintained an A.M. Best rating of “A” (Excellent) or higher since 1934 across its insurance subsidiaries.

• This rating reflects balance sheet strength, performance, market leadership, risk management, and ability to fulfill claims obligations.

• The long-term “A” rating demonstrates Westfield’s resilience through all economic cycles.

• It provides confidence that Westfield will pay out claims reliably for policyholders.

• When shopping for insurance, an A.M. Best rating is an important indicator to consider along with coverage, price, and service.

By choosing a carrier rated “A” Excellent like Westfield Insurance, customers gain the security of knowing their provider has the financial strength to deliver on promises for the long-term.