A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit ratings of "a-" of Agrinational Insurance Company (Agrinational) (Burlington, VT) and its wholly owned subsidiary, ADM Insurance Company (ADMIC) (Phoenix, AZ). The outlook for each of these ratings is stable. The ratings reflect their adequate risk-adjusted capitalization and strategic role in the crop insurance program and as captive insurers of Archer Daniels Midland Company [NYSE:ADM]. Partially offsetting the favorable rating factors is the high net retention on property exposures, which has produced some variability in operating results and capital. Also, as a single parent captive, Agrinational is exposed to concentration risk as captives' primary source of business is generally from one company. This is somewhat minimized by the group's diversified book of business and the parent's geographically disbursed assets. The captive program also provides insurance for a limited amount of third-party business sourced through an industry pooling arrangement. In addition, the crop insurance program, written by ADMIC and 100% reinsured to Agrinational, further diversifies the exposure and concentration of risk. This program continues to grow annually. As a means of diversifying its investment portfolio, Agrinational has invested in the leasing of railcars, tractor trailers, tugboats and barges. Management considers these investments as long term and better aligned with Agrinational's capital structure, while providing stability in investment returns. A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive. This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.