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Best’s News & Research Service - February 12, 2015 03:33 PM (EST)

A.M. Best Upgrades Issuer Credit Rating of Louisiana Farm Bureau Mutual Insurance Company

  • February 12, 2015 03:33 PM (EST)
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Oldwick //BestWire// - A.M. Best has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating (FSR) of B++ (Good) of Louisiana Farm Bureau Mutual Insurance Company (Louisiana Farm Bureau) (Baton Rouge, LA). The outlook for the ICR remains positive, while the outlook for the FSR has been revised to positive from stable.

Louisiana Farm Bureau's ratings reflect its solid risk-adjusted capitalization and favorable underwriting and operating results. While the company has benefited from somewhat milder weather patterns in recent years, it also has significantly improved underwriting profitability from a host of re-underwriting initiatives, including rate adjustments, increased management of risk exposures along coastal and inland areas, rigorous inspections of insured properties, prudent claims management and extensive reinsurance protection arrangements.

The positive outlook indicates that a continuation of these favorable operating performance trends and maintenance of favorable risk-adjusted capitalization could result in future rating upgrades. Conversely, as a property writer in a single state with some coastal exposure, Louisiana Farm Bureau remains susceptible to frequent and severe weather events that could potentially adversely impact its operating results and surplus position, thereby placing negative pressure on the ratings.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized include:


  • Understanding BCAR for Property/Casualty Insurers

  • Risk Management and the Rating Process for Insurance Companies

  • Catastrophe Analysis in A.M. Best Ratings

  • Evaluating U.S. Surplus Notes

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.



Louisiana United States Financial Strength Mutual Insurers Press Release Insurance Issuer Credit Rating Best's Credit Rating Action


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