APRIL 07, 2021 08:36 AM (EDT)
AM Best Upgrades Issuer Credit Rating of Farmers Fire Insurance Company
|Kevin Dorsey, AIAF, ARe |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 07, 2021 08:36 AM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Farmers Fire Insurance Company (Farmers) (York, PA).The outlook for the Long-Term ICR has been revised to stable from positive while the outlook for the FSR is stable.
The Credit Ratings (ratings) reflect Farmers’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The upgrade of the Long-Term ICR reflects Farmers improved operating performance and return on equity measures that compare favorably with the five-year averages of the personal property composite. The improved operating profitability is primarily due to positive five-year underwriting performance that has resulted from several initiatives by Farmers to improve its book of business through implementation of its new policy management platform and agency management, as well as pricing actions to re-underwrite its book of business.
The stable outlooks reflect AM Best’s expectation that Farmers will maintain its very strong balance sheet strength with continued positive operating profitability with moderate volatility over the near to medium term.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.