OLDWICK, N.J.–(BUSINESS WIRE)–#insurance—AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Amica Mutual Insurance Company (Amica Mutual) and its wholly owned subsidiary, Amica Property and Casualty Insurance Company (together known as Amica Mutual Group or Amica). At the same time, AM Best has revised the outlooks to stable from negative and affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Amica Life Insurance Company (Amica Life), a wholly owned subsidiary of Amica Mutual. All companies are domiciled in Lincoln, RI.
The Credit Ratings (ratings) of Amica Mutual Group reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The revision of the outlooks to stable from negative reflects Amica’s improved balance sheet strength following a return to operating profitability. This improvement has been driven largely by management’s corrective actions, including significant rate increases and a strategic focus on core northeastern states, which have supported surplus growth and strengthened risk-adjusted capitalization in 2024 and 2025. As a result, the group’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has improved and is maintained at the strongest level through 2025. Liquidity metrics also have stabilized following declines in prior years, while financial flexibility is supported by positive net cash flow and access to borrowing capacity through the Federal Home Loan Bank. In addition, Amica’s prudent reserving practices have produced favorable loss reserve development over the long term, and enhancements to its reinsurance program have reduced catastrophe exposure, further benefiting its balance sheet strength.
AM Best notes Amica’s operating performance has experienced volatility over the recent five-year period, largely a result of inflationary pressures and elevated catastrophe activity. However, underwriting performance has strengthened more recently, with improved results in 2024 and 2025, supported by rate increases, underwriting discipline and geographic rebalancing. Investment income also has remained consistent, supporting overall earnings. While policyholder dividends historically have increased Amica’s combined ratio relative to peers, AM Best notes these have been reduced gradually, and results excluding dividends compare more favorably with the industry composite.
The ratings of Amica Life reflect the company’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The revision of the outlooks to stable from negative for Amica Life reflects the stabilization of its parent, Amica Mutual, which provides implicit and explicit support to the company.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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