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FOR IMMEDIATE RELEASE
OLDWICK - MAY 20, 2019 03:16 PM (EDT)
AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Ratings to “bbb” from “bbb-” of South Carolina Farm Bureau Mutual Insurance Company and Palmetto Casualty Insurance Company (together known as South Carolina Farm Bureau Group). The outlook of these Credit Ratings (ratings) remains stable. Both companies are domiciled in Cayce-West Columbia, SC.
These ratings reflect South Carolina Farm Bureau Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect the group’s improved ERM capabilities including enhancements in the group’s reinsurance program and overall risk appetite. The group has improved its risk profile notably by lowering the amount of gross underwriting exposures and common stock investments relative to surplus, over the past five years. These measures serve to offset the potential future volatility of operating results and surplus considerably. In addition, the underlying book of business is much less susceptible to the impact of hurricane events following several years of a coastal exposure management program. The very strong level of balance sheet strength reflects the company’s strong liquidity levels, conservative investment profile and comprehensive reinsurance protection. AM Best’s marginal assessment of operating performance reflects the group’s historical volatility of operating results. The limited business profile reflects the company’s geographic and product concentration in South Carolina, which exposes the group to frequent and severe weather-related events, as well as regulatory and economic changes.
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.
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