APRIL 06, 2017 11:34 AM (EDT)
A.M. Best Upgrades Credit Ratings of Mississippi Farm Bureau Casualty Insurance Company
|Angelo Lozano |
+1 908 439 2200, ext. 5169
+1 908 439 2200, ext. 5125
Manager, Public Relations
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Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 06, 2017 11:34 AM (EDT)
A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Mississippi Farm Bureau Casualty Insurance Company (Mississippi Farm Bureau) (Jackson, MS). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The rating upgrades reflect Mississippi Farm Bureau’s strong risk-adjusted capitalization, well-established regional market presence, and significant risk management actions taken over the past several years to improve and stabilize underwriting profitability. Mississippi Farm Bureau’s accomplishments reflect the success of operational and underwriting strategies implemented to strengthen its business profile, while improving profitability. In addition, Mississippi Farm Bureau 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. The ratings also consider the explicit support the company has received historically from its parent, Southern Farm Bureau Casualty Insurance Company.
Partially offsetting these positive rating factors are Mississippi Farm Bureau’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.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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