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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 16, 2022 01:50 PM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of Farmers Insurance Group (Farmers). At the same time, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of “bbb+” (Good) on the outstanding surplus notes of Farmers Insurance Exchange (Woodland Hills, CA) and Farmers Exchange Capital (Wilmington, DE). The outlook of these Credit Ratings (ratings) is stable. (Please see link below for a detailed listing of the companies and ratings.)
The ratings of Farmers reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management. Farmers continues to deliver adequate operating results with some volatility related to exposure to catastrophe losses. The management has implemented considerable measures to enhance its underwriting performance through targeted pricing actions and risk-mitigation strategies, revised product offerings and strengthening of underwriting controls. In addition, AM Best believes the acquisition of MetLife’s property/casualty operations will be a significant contributor to underwriting profitability going forward. Partially offsetting these strengths is Farmers’ high exposure to catastrophe losses and reliance on over $2 billion of surplus notes.
A complete listing of Farmers’ FSRs, Long-Term ICRs and Long-Term IRs is available.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.