Best’s News & Research Service - January 29, 2016 11:03 AM (EST)
A.M. Best Upgrades Ratings of Louisiana Farm Bureau Mutual Insurance Company
- January 29, 2016 11:03 AM (EST)
Oldwick //BestWire// - A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb+” of Louisiana Farm Bureau Mutual Insurance Company (Louisiana Farm Bureau) (Baton Rouge, LA). The outlook for both ratings has been revised to stable from positive.
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 stable outlook reflects the expected continuation of favorable operating performance and maintenance of solid risk-adjusted capitalization.
Partially offsetting these positive rating factors is the company’s geographic concentration of risk. As a single-state property writer with some coastal exposure, Louisiana Farm Bureau remains susceptible to frequent and severe weather events as well as judicial, economic and regulatory concerns.
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 see A.M. Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.