CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 04, 2020 08:59 AM (EDT)
AM Best has revised the outlooks to positive from stable 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). Both 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.
The revision of the outlooks to positive reflects improvements Georgia Farm Bureau has made to its balance sheet and risk-adjusted capitalization over the last several years. Surplus growth has stabilized year-over-year (in contrast to prior years when at times double-digit percentage decreases were observed) and supported by operating earnings. The quality of capital continues to improve as management aggressively repays surplus notes. Underwriting leverage measures have come down considerably to levels that are on-par with the composite averages. In addition, common stock leverage was reduced in order to lower the organization’s total exposure to the equity markets. Finally, reserving practices have materially improved following several years of reported reserve deficiencies. If these results continue, AM Best anticipates a potential revision in the group’s balance sheet strength assessment.
Overall, management continues to be proactive throughout its underwriting and risk management practices, and positive results are expected to continue for the foreseeable future.
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.