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S&P Global Ratings has removed Texas-based Hochheim Prairie Farm Mutual Insurance Assn. (HPFMIA) and its subsidiary, Hochheim Prairie Casualty Insurance Co. (HPCIC, collectively Hochheim) from Credit Watch Negative, where the companies were initially placed on Nov. 28, 2017.
S&P Global Ratings also affirmed its 'B+' financial strength rating on Hochheim. The outlook is stable.
Given the favorable weather for Texas and strong underwriting profits for Hochheim in 2018 the ratings agency said it believes the credit profile has stabilized. As of September 2018, the company's combined ratio was 83.2 percent compared to 121.4 percent for the same period in the previous year.
The favorable underwriting translated to a net profit of $18.1 million, which...