SEPTEMBER 25, 2019 02:47 PM (EDT)
AM Best Removes From Under Review with Positive Implications, Upgrades Credit Ratings of Colorado Farm Bureau Insurance Company
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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 25, 2019 02:47 PM (EDT)
AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A+ (Superior) from B+ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa-” from “bbb-” of Colorado Farm Bureau Insurance Company (Colorado Farm Bureau) (Ridgeland, MS). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” of Southern Farm Bureau Casualty Insurance Company (Ridgeland, MS) and Louisiana Farm Bureau Casualty Insurance Company (Baton Rouge, LA). The outlook of these ratings is stable. Collectively along with Colorado Farm Bureau, these companies are members of the Southern Farm Bureau Casualty Group (SFB).
The ratings reflect SFB’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
On July 1, 2019, Colorado Farm Bureau Mutual Insurance Company was converted into a stock company and renamed Colorado Farm Bureau Insurance Company. Concurrently, Southern Farm Bureau Casualty Insurance Company purchased all of the stock of the newly converted company, making Colorado Farm Bureau Insurance Company a wholly owned subsidiary of SFB. As a result of SFB’s ownership of Colorado Farm Bureau Insurance Company, along with a newly instituted intercompany reinsurance agreement between both companies, Colorado Farm Bureau receives full rating enhancement up to the level of SFB.
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 Understanding 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.
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