AM Best Information Services

APRIL 14, 2016 01:59 PM (EDT)

A.M. Best Revises Outlook to Positive for Mississippi Farm Bureau Casualty Insurance Company

 Lewis DeLosa
Financial Analyst
+1 908 439 2200, ext. 5529

Joe Burtone
Assistant Vice President
+1 908 439 2200, ext. 5125
Christopher Sharkey
Manager, Public Relations
+1 908 439-2200, ext. 5159

Jim Peavy
Assistant Vice President, Public Relations
+1 908 439-2200, ext. 5644


OLDWICK - APRIL 14, 2016 01:59 PM (EDT)
A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Mississippi Farm Bureau Casualty Insurance Company (Mississippi Farm Bureau Casualty) (Jackson, MS).

The rating actions reflect Mississippi Farm Bureau Casualty’s strong risk-adjusted capitalization, well-established regional market presence and significant risk management actions taken over the past several years to improve underwriting profitability. Mississippi Farm Bureau Casualty’s accomplishments reflect the success of operational and underwriting strategies implemented to strengthen its business profile while improving profitability. In addition, Mississippi Farm Bureau Casualty has benefited from somewhat less severe weather-related claims activity, and has taken advantage of its network of longstanding and strong agency relationships. Increased use of modeling also has enhanced its risk selection and pricing capabilities. Overall risk-adjusted capitalization has improved as management took the necessary steps to de-risk its balance sheet and adopt an enterprise risk management process that contains a comprehensive catalog of risks and conservative risk tolerances.

Partially offsetting these positive rating factors is Mississippi Farm Bureau Casualty’s above-average loss ratio and geographic concentration in Mississippi, which exposes the group to potential weather-related losses. While the company maintains a well-established regional market presence, management has implemented a strategy to expand in the northern portion of Mississippi away from the Gulf Coast. The company profile is enhanced due to the Farm Bureau affiliation, as well as support from Southern Farm Bureau Casualty Insurance Company (Southern Farm Bureau Casualty).

In future rating cycles, upward movement is possible if positive operating earnings are sustained together with the maintenance of solid overall risk adjusted capitalization and surplus growth through internal operations. Also, upward movement should be augmented by continued development of enterprise risk management to insulate the company from shock losses.

Downward pressure on the rating could occur as a result of adverse operating results coupled with a drop in overall risk-adjusted capitalization from severe catastrophic events, or if there are material changes to Mississippi Farm Bureau Casualty’s relationship with its parent, Southern Farm Bureau Casualty, which has provided it with past capital infusions, ongoing reinsurance protection as well as administrative and systems support.

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.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.