AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Hartland Mutual Insurance Company (Hartland) (Minot, ND).

The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect Hartland’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The rating affirmations reflect the reversal of a trend in deterioration of surplus through early 2026. Hartland’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, which is supportive of the company’s strong balance sheet assessment.

The two years of surplus decline in 2024 and 2025 were a result of increased catastrophe retention levels and elevated reinsurance costs. Retentions were increased to a level where Hartland retained all catastrophe losses and did not cede any catastrophe losses.

These elevated retention levels pressured not only the balance sheet but also the operating performance, which deteriorated in the past two years due to the increased retained losses and loss payments, AM Best said.

Hartland is taking rate and looking to adjust its reinsurance retentions to maintain the health of the company’s balance sheet and operating performance.

Through the first half of 2026, Hartland reported policyholder surplus growth of 12.4% and a combined ratio of 89.7%.

Source: AM Best

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