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AM Best Assigns and Places Credit Ratings of American Reliable Insurance Company Under Review With Negative Implications

AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) to American Reliable Insurance Company (ARIC) (Phoenix, AZ). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications. ARIC is a newly added member of ECM Insurance Group (ECM). At the same time, AM Best has maintained the under review with negative implications status for the FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of Everett Cash Mutual Insurance Company (Everett Cash Mutual) and 1st Choice Advantage Insurance Company, Inc., which are also members of ECM. Concurrently, AM Best has maintained the under review with developing implications status for the FSR of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. All companies are domiciled in Everett, PA unless otherwise noted.

ARIC’s ratings reflect its role as a member of the group based on the implementation of a 100% quota share agreement with its parent, Everett Cash Mutual.

The ratings reflect ECM’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 balance sheet is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), derived mostly from solid year-over-year operating performance. ECM’s business profile reflects management’s core competency that continues to focus on agricultural and selected commercial operations. The ERM assessment reflects the group’s risk management capabilities, which are aligned with the complexity of the business profile.

AM Best has maintained the under review with negative implications status for the members of ECM. This under review status reflects material surplus erosion in 2022 due to Everett Cash Mutual’s acquisition of ARIC and associated premium growth. The transaction closed Dec. 31, 2022. While this business opportunity will provide diversification of the group’s geographic footprint, uncertainty remains regarding prospective risk-adjusted capitalization, as measured by BCAR, and the significant amount of execution risk as the group continues to expand its niche area of proven agricultural expertise. Based on an intercompany reinsurance agreement effective Jan. 1, 2023, ARIC has been included as a member of the group.

AM Best has maintained the under review with developing implications status for Ever-Greene. This status reflects the implementation of a quota share agreement with its affiliate, Everett Cash Mutual. This reinsurance agreement represents the strategic importance that Ever-Greene plays in the overall business strategy, and leveraging capital across the organization.

The ratings of ECM and Ever-Greene will remain under review until management has completed the intended capital action plan structured to recapitalize the balance sheet, and AM Best evaluates the full impact on the group’s risk-adjusted capitalization and overall balance sheet strength. While significant progress has been noted, these actions have not yet been finalized.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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