Best’s News & Research Service - April 14, 2022 08:38 AM (EDT)
AM Best Revises Outlooks to Positive for Members of Farm Bureau of Idaho Group
- April 14, 2022 08:38 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Farm Bureau Mutual Insurance Company of Idaho and its indirect subsidiary, Western Community Insurance Company, collectively referred to as Farm Bureau of Idaho Group (Idaho Farm Bureau). All companies are domiciled in Pocatello, ID.
The Credit Ratings (ratings) reflect Idaho Farm Bureau’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM),
The revised outlooks to positive reflect Idaho Farm Bureau’s sustained profitability over the past three years, which resulted in underwriting and operating performance metrics that are becoming increasingly more comparable with those in the adequate category. The company’s improving results have benefited from management’s various underwriting initiatives, including rate increases, tightened underwriting guidelines and an improved reinsurance program. The positive outlooks also reflect AM Best’s expectation that volatility in Idaho Farm Bureau’s key operating metrics will remain moderate, inclusive of the impacts from weather-related events.
Idaho Farm Bureau’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), relatively conservative underwriting and loss-reserve leverage measures, a prudent investment portfolio and comprehensive reinsurance program. Idaho Farm Bureau’s neutral business profile reflects the group’s large market share, brand recognition and loyal customer base in Idaho across farm, home and auto clients. AM Best considers Idaho Farm Bureau’s ERM program to be appropriate for its size and scope of operations.
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, Bests 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.