A.M. Best Co. has affirmed the “B+” (Very Good) financial strength rating of Le Mars Mutual Insurance Company of Iowa and removed it from under review with developing implications, as both parties have signed an Affiliation Agreement with Donegal Mutual Insurance Company. Finalization of the agreement is subject to policyholder and regulatory approval.
The agreement between the two insurers will grant Donegal control of Le Mars’ board of directors and will allow Donegal Mutual to provide management assistance to Le Mars.
Le Mars offers a variety of personal lines products, as well as commercial multi-peril coverages in four Midwestern states.
The company will continue to offer these insurance products through its current distribution network of independent agents. Le Mars will benefit from its affiliation with Donegal through financial, actuarial, underwriting and claims support, as well as through improved economies of scale and technology-driven efficiencies.
The alliance with Donegal will enhance Le Mars’ financial strength and provide extensive support for enhancing existing products. For Donegal, the affiliation will enable the insurer to expand its operations into several Midwestern states.
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