Best’s News & Research Service - September 29, 2017 03:11 PM (EDT)
A.M. Best Upgrades Issuer Credit Rating of Members of Farm Bureau Property & Casualty Group
- September 29, 2017 03:11 PM (EDT)
Oldwick //BestWire// - A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of Farm Bureau Property & Casualty Insurance Company and Western Agriculture Insurance Company, collectively known as Farm Bureau Property & Casualty Group. The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable. Both companies are domiciled in West Des Moines, IA.
The rating upgrade reflects the group’s strong risk-adjusted capitalization, favorable operating performance and well-established market presence. The capital position further benefits from the group’s high quality investment portfolio, consistently favorable loss reserve development trends and comprehensive reinsurance program. Additional strengths include its strong brand recognition, strengthened member service capabilities, exclusive agency force and its affiliation with Farm Bureau Federations, which facilitates marketing and government relations efforts, thereby providing greater access to its members. The group’s favorable operating performance over the past several years has been enhanced by management’s ongoing efforts to position the organization for long-term future success through various underwriting, product and pricing initiatives to support growth and retention of profitable business.
These positive rating factors are partially offset by the group’s geographic concentration in the Midwest, which exposes its earnings to catastrophe losses stemming from wind, hail, tornadoes and winter storms as observed through the first half of 2017. Despite significant weather-related losses in the first half of 2017, the group’s management anticipates full year underwriting and operating results will remain consistent with planned projections based on its prudent risk management, well-developed enterprise risk management capabilities and comprehensive reinsurance program.
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