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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 07, 2019 09:16 AM (EDT)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” of Georgia Farm Bureau Mutual Insurance Company and Georgia Farm Bureau Casualty Insurance Company, collectively referred to as the Georgia Farm Bureau Group (Georgia Farm Bureau). All companies are domiciled in Macon, GA.
The ratings reflect Georgia Farm Bureau’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revision of the outlooks to stable reflects Georgia Farm Bureau’s improvement of its ERM program resulting from the implementation of a number of initiatives designed to reduce financial volatility, stabilize policyholder surplus and improve operating performance. Over the past two years, the group has lowered its underwriting leverage to levels commensurate with the composite average, improved its common stock leverage that effectively lowers its susceptibility to movements in the stock market, and enhanced its reinsurance program to better handle severity of weather losses. In addition, in 2018, the group sustained its largest weather-related loss when Hurricane Michael made landfall in the fourth quarter of 2018. The group was able to report improved results in 2018 despite this large weather-related event, which highlights the material changes made to its overall ERM program. Further, management continues to be proactive by implementing underwriting initiatives to improve profitability going forward and closely managing its reserve levels to improve redundancy.
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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