APRIL 05, 2010 12:00 AM (EDT)
A.M. Best Revises Outlook to Positive for Mississippi Farm Bureau Casualty Insurance Company
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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 05, 2010 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and issuer credit of "bbb+" of Mississippi Farm Bureau Casualty Insurance Company (Mississippi FB Casualty) (Jackson, MS).
The positive outlook reflects Mississippi FB Casualty's continued strong operating earnings and improved risk-adjusted capitalization through organic surplus growth. The ratings also recognize Mississippi FB Casualty's favorable risk-adjusted capitalization, prudent risk-management strategies and the historical support the company receives from its parent, Southern Farm Bureau Casualty Insurance Company (Jackson, MS). These positive rating factors are reflective of management's underwriting and catastrophe management initiatives.
Partially offsetting these positive rating factors are Mississippi FB Casualty's property concentration in Mississippi. With a single state geographic concentration, earnings are exposed to catastrophic losses as well as market and regulatory concerns. However, considerable catastrophe reinsurance is maintained to insulate Mississippi FB Casualty's surplus and earnings.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.