AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of RAM Mutual Insurance Company (RAM), based in Esko, Minnesota.
The ratings reflect RAM’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile, and appropriate enterprise risk management (ERM).
Outlook Revision Drivers
The revision to positive from stable reflects improved underwriting and overall operating results in each of the past two years and through the first half of 2026. The improvement was driven by significant rate increases and underwriting initiatives — including mandatory deductibles and stricter underwriting guidelines — implemented following large losses between 2021 and 2023. AM Best expects the favorable trend in RAM’s operating performance to continue over the intermediate term, although results may remain subject to modest volatility from weather-related events.
Balance Sheet and Risk Profile
RAM’s balance sheet strength is assessed as very strong, supported by the strongest levels of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment is further supported by favorable underwriting leverage metrics, strong liquidity, and a conservative investment portfolio.
The business profile assessment reflects RAM’s geographic concentration in Minnesota, which increases the company’s susceptibility to severe weather-related events. RAM’s ERM is assessed as appropriate, reflecting strong internal controls and an active, engaged board of directors involved in the risk management process.
