FEBRUARY 05, 2020 11:40 AM (EST)
AM Best Revises Issuer Credit Rating Outlook to Positive for Oklahoma Farm Bureau Mutual Ins Co and Subsidiary
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 05, 2020 11:40 AM (EST)
These Credit Ratings (ratings) reflect Oklahoma Farm Bureau’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The revision of the Long-Term ICR outlook to positive reflects the group’s continued improvement in balance sheet strength, and anticipated improvement in its current assessment level of strong. The group has reduced the volatility in its surplus growth in recent years, despite the continued principal repayment of its surplus note obligations. This reduced volatility stems from Oklahoma Farm Bureau’s improved underwriting results and reinsurance program. Additionally, the group continues to reduce its underwriting leverage ratios, which have recently begun to track more closely with composite averages.
The group’s improvement stems from corrective actions implemented in prior years following a series of elevated catastrophic events. The group responded by improving underwriting guidelines, increasing segmentation and strengthening its reinsurance program with added coverages. Since those corrective actions were implemented, the group has generated stable earnings and improved its capital position. While favorable weather trends have occurred in a number of the recent years, Oklahoma Farm Bureau experienced record weather activity in 2019 and still produced favorable returns, which support risk management and exposure initiatives. As these trends continue, AM Best anticipates that the group will continue to improve its balance sheet strength.
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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.