FEBRUARY 28, 2020 03:35 PM (EST)
AM Best Affirms Credit Ratings of Members of Farmers Insurance Group
|Edin Imsirovic |
+1 908 439 2200, ext. 5740
+1 908 439 2200, ext. 5696
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 28, 2020 03:35 PM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the members of Farmers Insurance Group (Farmers). Concurrently, AM Best has affirmed the Long-Term ICR of “a” of Farmers’ management company and attorney-in-fact, Farmers Group, Inc. (Nevada) (FGI), as well as the Long-Term Issue Credit Ratings (Long-Term IR) of “bbb+” on the outstanding surplus notes of Farmers Insurance Exchange (Exchange) (Woodland Hills, CA) and Farmers Exchange Capital. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Los Angeles, CA, unless otherwise specified. (Please see the link below for a detailed listing of the companies and ratings).
The ratings of Farmers reflect the group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). Farmers’ operating performance continues to improve as the company has implemented considerable measures to enhance its underwriting performance through targeted pricing actions and risk-mitigation strategies, revised product offerings and strengthening of underwriting controls. Partially offsetting these strengths is Farmers’ high exposure to catastrophe losses and reliance on over $2 billion of surplus notes.
A complete listing of Farmers Group, Inc.’s FSRs, Long-Term ICRs and Long- and Short-Term IRs is available.
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.