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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 02, 2010 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of FMH Insurance Group (FMH) (Des Moines, IA) and its members. FMH is comprised of Farmers Union Co-Op Insurance Company, Inc., and Farmers Mutual Hail Insurance Company of Iowa (both of West Des Moines, IA). The outlook for all ratings is stable.
The ratings reflect FMH's superior capitalization, solid underwriting and operating results, along with the benefits derived from its leading presence within the crop hail insurance industry. In addition, FMH is a major writer of multi-peril crop insurance. The ratings also recognize the added balance sheet protection provided by an aggregate stop loss reinsurance treaty, which minimizes the potential impact from severe underwriting losses, as well as management's expertise in the highly specialized multiple peril crop insurance and crop hail marketplaces.
These positive factors are somewhat offset by FMH's reliance on reinsurance, narrow product mix and the potential for underwriting volatility with continued weather-related events.
The stable outlook reflects A.M. Best's expectation that capitalization will remain supportive of FMH's ratings and that strong underwriting and operating results will be sustained over the near term.
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.