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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 22, 2010 12:00 AM (EDT)
A.M. Best Co. has downgraded the issuer credit ratings (ICR) to "bbb" from "bbb+" and affirmed the financial strength rating (FSR) of B++ (Good) of Georgia Farm Bureau Group and its members, Georgia Farm Bureau Mutual Insurance Company and Georgia Farm Bureau Casualty Insurance Company. The outlook for all ratings has been revised to negative from stable. All companies are domiciled in Macon, GA.
While the affirmation of the FSR reflects the group's risk-adjusted capitalization that still supports the current B++, the downgrading of the ICR to "bbb" reflects Georgia Farm Bureau Group's continuing unfavorable underwriting performance. The group posted a $65 million underwriting loss in 2009, following a nearly $80 million underwriting loss in 2008. As in 2008, the group's underwriting results in 2009 were again negatively impacted by several significant storm events, while the personal auto liability and homeowners' segment, which is part of the group's core book of business, continues to significantly underperform relative to its industry peers. Furthermore, as a single state property writer, Georgia Farm Bureau Group's overall earnings remain exposed to frequent and severe weather-related events.
The negative outlook reflects the group's ongoing poor operating performance trend, the continuation of which will place additional pressure on the group's risk-adjusted capitalization.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.