Best’s News & Research Service - September 08, 2023 12:33 PM (EDT)
AM Best Places Credit Ratings of Texas Farm Bureau Mutual Group’s Members Under Review With Negative Implications
- September 08, 2023 12:33 PM (EDT)
Oldwick //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Texas Farm Bureau Mutual Insurance Company and Texas Farm Bureau Underwriters. These companies are collectively referred to as Texas Farm Bureau Mutual Group (Texas Mutual) and are domiciled in Waco, TX.
These Credit Ratings (ratings) have been placed under review with negative implications due to material deterioration in Texas Mutual’s surplus through the first half of 2023. The reduction in surplus was driven by net underwriting losses, which were driven by the extraordinary weather-related events in Texas during 2023. These weather-related events resulted in 11 catastrophe losses as classified by the group, four of which exceeded its occurrence catastrophe retention level.
The company’s management is working on a series of initiatives to replenish lost capital, increase overall risk-adjusted capitalization and improve balance sheet strength metrics. The ratings will remain under review until AM Best can fully analyze the impact of management’s plan. If these actions do not sufficiently improve balance sheet strength metrics and overall risk-adjusted capitalization, the ratings will be downgraded.
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.