Back to Summer 2022 Issue

The WRC Group Withdraws from A.M. Best Rating Process

Summer 2022 Issue

After analyzing the pros and cons of participating in the A.M. Best rating process, Wisconsin Reinsurance Corporation, the parent company of 1st Auto, has decided to withdraw for several key reasons. Before making this decision, the leadership team confirmed with reinsurers and regulators that they saw no issue with us doing so. In fact, our reinsurers stated that many small to midsize companies are taking the same action for the same reasons.

Those reasons include the high cost, the resources and time required every year, and a lack of transparency in how companies are evaluated. In addition, the peer comparison used isn’t meaningful in our view.

The rating is based on a comparison of WRC to global reinsurers and companies that are much larger than WRC. When we analyzed numerous metrics to assess our performance in comparison to companies similar to WRC, we performed at a high level, but we could not persuade the rating committee to move us to a more appropriate peer group.

WRC has not participated in the rating process during most of our 90-plus years in business. We have built a strong reputation by investing our resources in your success, and that partnership will continue.