OCTOBER 06, 2022 09:59 AM (EDT)
AM Best Revises Outlooks to Negative for Members of Southern Farm Bureau Casualty Group
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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 06, 2022 09:59 AM (EDT)
AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of Colorado Farm Bureau Insurance Company (Colorado Farm Bureau) (Ridgeland, MS), Southern Farm Bureau Casualty Insurance Company (Ridgeland, MS) and Louisiana Farm Bureau Casualty Insurance Company (Baton Rouge, LA), and Mississippi Farm Bureau Casualty Insurance Company (Jackson, MI). These companies are collectively referred to as Southern Farm Bureau.
The Credit Ratings (ratings) reflect Southern Farm Bureau’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
The revised outlooks reflect a notable decline in the group’s operating results over the recent period, as evidenced by elevated combined ratios, operating losses and corresponding declines in surplus. Results have been impacted by the inherent risks in the current book of business given the group’s catastrophe-exposed risk profile, as well as trends in the personal auto segment that have strained Southern Farm Bureau’s ability to manage through these trends effectively in alignment with its favorable business profile assessment. Although management is taking a considerable amount of rate and implementing new strategic initiatives to mitigate losses, the overall effectiveness of these actions remains to be seen. As a result, the favorable business profile assessment is likely to be downgraded in the absence of improvement or stabilization in results over the near 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 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.