AM Best reports it 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 Co. and its wholly owned subsidiary, Amica Property and Casualty Insurance Co.
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 Co., a wholly owned subsidiary of Amica Mutual.
The Amica Mutual companies are domiciled in Lincoln, Rhode Island.
The ratings agency said 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,” the announcement stated.
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.
According to the announcement, Amica’s liquidity metrics also have stabilized following declines in prior years, while positive net cash flow and access to borrowing capacity through the Federal Home Loan Bank support financial flexibility.
AM Best further credited Amica with “prudent reserving practices” that have produced favorable loss reserve development and enhancements to its reinsurance program that have reduced catastrophe exposure.
AM Best noted that 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, AM Best said. While policyholder dividends historically have increased Amica’s combined ratio relative to peers, AM Best noted that Amica has gradually reduced its dividends to where they compare more favorably with the industry composite.
AM Best said the credit ratings of Amica Mutual Group reflect the group’s balance sheet strength, which its analysts assess as “strongest,” as well as its “adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).”
The ratings of Amica Life reflect the company’s balance sheet strength, which AM Best said it 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
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