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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 24, 2021 09:54 AM (EDT)
AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Mississippi Farm Bureau Casualty Insurance Company (Mississippi Farm Bureau) (Jackson, MS).
The Credit Ratings (ratings) reflect Mississippi Farm Bureau’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The outlook revisions are in response to adverse trends in the group’s underwriting performance from 2019 through year-to-date 2021. The company’s volatile results have pressured profitability metrics and are trending unfavorably when compared against writers with operating performance assessments of strong. The group’s adverse performance has been driven by increased frequency of weather events across its territories. Management has taken steps to improve performance, specifically by writing more business in its northern territories (which are less exposed to coastal catastrophic storms), implementation of rate increases and efforts to lower operating expenses. Prospectively, the resolution of the negative outlook will be determined by the company’s ability to mitigate weather losses, stabilize operating results and revert the combined ratio to pre-2018 levels in closer proximity to those in the strong operating performance assessment category.
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.