JUNE 16, 2021 01:58 PM (EDT)
AM Best Removes From Under Review, Affirms Credit Ratings of Most Farmers Ins Group Members, Downgrades ICRs of Certain Members
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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 16, 2021 01:58 PM (EDT)
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of most members of Farmers Insurance Group (Farmers). At the same time, AM Best has removed from under review with negative implications and downgraded the Long-Term ICRs to “a” (Excellent) from “a+” (Excellent) and affirmed the FSR of A (Excellent) of certain members of Farmers Insurance Group. Concurrently, AM Best has removed from under review with developing implications and affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of “bbb+” (Good) on the outstanding surplus notes of Farmers Insurance Exchange (Exchange) (Woodland Hills, CA) and Farmers Exchange Capital. The outlook assigned to these Credit Ratings (ratings) is stable. All companies are domiciled in Los Angeles, CA, unless otherwise specified. (Please see link below for a detailed listing of the companies and ratings.)
The ratings of Farmers reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management. Farmers continues to deliver positive operating performance, as the company has implemented considerable measures to enhance its underwriting performance through targeted pricing actions and risk-mitigation strategies, revised product offerings and strengthening of underwriting controls. In addition, AM Best believes the acquisition of MetLife P&C operations will be a significant contributor to underwriting profitability going forward. Partially offsetting these strengths is Farmers’ high exposure to catastrophe losses and reliance on over $2 billion of surplus notes.
A complete listing of Farmers’ FSRs, Long-Term ICRs and Long-Term IRs also is available.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.