Financial Ratings

Your trust in our services is important. That’s why we work with rating services for insurance companies to do comprehensive analyses of our financial strength each year. We want you to know you can depend on us long into the future. 

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KBRA Rating
A- (Sound Financial Condition) Rating

Brotherhood Mutual engaged Kroll Bond Rating Agency (KBRA) in 2021 to assign a rating for financial strength. 

The following was released in 2021 and affirmed again in August 2024:

Brotherhood Mutual received an A- insurance financial strength rating (IFSR) and a rating of BBB to the company’s currently outstanding surplus notes. 

“We’ve seen significant growth in the number of Christian K-12 schools and Christian colleges and universities that we insure. Working with a premier bond rating company signifies our dedication to providing stability and growth for the ministries we serve," said Mark Robison, chairman and president of Brotherhood Mutual.

KBRA rates many insurance companies, including Lloyd’s of London, Manhattan Life, and Penn Mutual.

According to the release, the rating reflects the company’s:

• Focused market strategy, improved reserving practices, high customer retention rates, and geographic diversification with limited exposure concentrations.

• Highly experienced management team, with a strong track record of growth and risk management.

• High degree of geographic diversification, with limited exposure concentrations.

• Fundamentally sound underwriting and financial analytics with advanced technology for risk selection.

As a leader in the industry, Brotherhood Mutual serves more than 67,000 Christian churches, schools, colleges, camps, and mission organizations. Since 2009, the company has nearly doubled both its customer base and its employee base. There is also strong growth in demand for its MinistryWorks service, which is America’s largest payroll and payroll tax filing service that specializes in Christian ministries. 

—Source KBRA Report

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AM Best Rating 
B++ Good Rating 

Brotherhood Mutual earned a B++ Good rating from AM Best, who categorized our balance sheet as strong and our financial strength as stable. 

The following excerpts from the April 11, 2024, AM Best report and press release, reflect Brotherhood Mutual's solid position in the insurance market. Brotherhood Mutual serves a niche segment within the industry: Christian ministries including churches, schools, colleges, camps, and related nonprofit ministries. 

• The company is a market leader within its niche with a strong presence in the congregational and hierarchical church markets, distributing through a well-established network. ERM is assessed as appropriate, focusing on risk mitigation and control, aided by a comprehensive reinsurance program. 

• The company’s underwriting performance has been challenged by elevated weather-related losses, particularly multiple low level catastrophe losses impacting its property insurance book. However, five-year results were largely driven by 2023, with net income reported in four of the last five years. 

• The company has a high-quality investment portfolio that is weighted toward fixed-income securities with adequate liquidity, although metrics modestly trail the commercial property composite. While the focus remains on fixed income, Brotherhood Mutual has modestly above-average common stock leverage. 

• Favorable reserve development through year-end 2023 is driven by workers' compensation, though volatility remains in liability and property lines. Management has been actively working towards maintaining a more conservative reserve position. 

—Source: AM Best Report

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Updated April 2024