Best’s News & Research Service - March 14, 2008 03:05 PM (EDT)
A.M. Best Assigns Issuer Credit Ratings to COUNTRY Insurance & Financial Services and Its Affiliates
OLDWICK, N.J. //BestWire// - A.M. Best Co. has assigned issuer credit ratings (ICR) of “aa-” and affirmed the financial strength ratings (FSR) of A+ (Superior) of COUNTRY Insurance & Financial Services (COUNTRY Financial) (Bloomington, IL), its property/casualty members and key life insurance affiliates. A.M. Best also has assigned an ICR of “a-” and affirmed the FSR of A- (Excellent) of Cotton States Life Insurance Company (Atlanta, GA). The outlook assigned to the ICRs is stable, and the outlook for the FSRs is stable.
Concurrently, A.M. Best has withdrawn the FSR of A- (Excellent) and assigned a category NR-5 (Not Formally Followed) to Mutual Service Life Insurance Company (Mutual Service) (Bloomington, IL). This rating action follows the announcement that Mutual Service was merged with its parent company, COUNTRY Life Insurance Company (COUNTRY Life) (Bloomington, IL), effective November 1, 2007.
The property/casualty ratings of COUNTRY Financial reflect its strong risk-adjusted capitalization, favorable operating performance, adherence to strict underwriting principles and the competitive advantages from the sponsorship by several state Farm Bureau Federations that facilitate marketing, business retention and government relations. Partially offsetting these strengths is COUNTRY Financial’s exposure to localized storms and catastrophe losses, elevated expense ratio and historical variability in its operating results.
The life ratings of COUNTRY Financial reflect the consolidated strength of COUNTRY Life and COUNTRY Investors Life Assurance Company (COUNTRY Investors) (Bloomington, IL). The ratings also recognize the strong penetration rate among COUNTRY Financial Farm Bureau members and the life companies’ superior risk-adjusted capitalization, as well as their recently improved direct life insurance premium growth trends. Offsetting these strengths are declining profitability, high general expense levels and fluctuating premium activity in certain business lines.
Cotton States Life’s rating affirmation acknowledges its continued growth in premium, favorable level of risk-adjusted capitalization and the benefits derived from membership within the COUNTRY Financial organization. Offsetting these strengths are the low, albeit increasing net operating gains over the last several years, the company’s geographical concentration and continued integration issues into the COUNTRY Financial group.
For a complete list of COUNTRY Insurance & Financial Services’ FSRs and ICRs, please visit http://www.ambest.com/press/031406country.pdf.