AM Best


AM Best Revises Outlooks to Positive for Farmers Alliance Mutual Insurance Company and Its Subsidiaries


CONTACTS:

Dan Hofmeister
Financial Analyst
+1 908 439 2200, ext. 5385
dan.hofmeister@ambest.com

Richard Attanasio
Director
+1 908 439 2200, ext. 5432
richard.attanasio@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 12, 2018 01:07 PM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Farmers Alliance Mutual Insurance Company and its wholly owned subsidiaries, Alliance Indemnity Company and Alliance Insurance Company, Inc. (all domiciled in McPherson, KS) (collectively referred to as Farmers Alliance Companies).

The Credit Ratings of Farmers Alliance Companies reflect their balance sheet strength, which A.M. Best categorizes as strongest, as well as their marginal operating performance, neutral business profile and appropriate enterprise risk management.

The positive outlooks reflect a trend of favorable underwriting performance, which has resulted in more stabilized underwriting returns in recent years. AM Best expects that the improved underwriting stability will further support capitalization in future years, through organic favorable operating returns. The improved operating performance trends follow a series of underwriting actions the group initiated in earlier years to stabilize results. These actions included the new exposure mitigation techniques, improved rate granularity and risk management processes. As a result of these changes, the group’s five-year averages for return on revenue and equity are more than double its 10-year averages. Additionally, the group has reported net income in the last five consecutive years.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.