A.M. Best Places Ratings of John Deere Insurance Company Under Review With Developing Implications
September 24 2014 - 10:32AM
Business Wire
A.M. Best has placed under review with developing
implications the financial strength rating of A- (Excellent) and
the issuer credit rating of "a-" of John Deere Insurance
Company (JDIC) (Johnston, IA). The developing implications
reflect the possibility that the ratings may change, but the
direction of any ratings change is uncertain.
The actions follow the recent announcement by Deere &
Company (Moline, Illinois) (NYSE:DE) that it will review
strategic options for its crop insurance business underwritten
through its subsidiary, JDIC. At this time, there is no formal
decision or agreements in regard to the sale of JDIC.
JDIC receives rating enhancement through its relationship with
Deere & Company. This enhancement reflects both the operating
and financial support of its parent. Whether JDIC comes under new
ownership or not, the level of such enhancement would again be
reviewed by A.M. Best at the conclusion of the strategic
review.
The ratings reflect JDIC’s strong capitalization, experienced
management and the explicit support and benefits associated with
being ultimately owned by Deere & Company (Deere), a world
leader in providing advanced products and services for agriculture,
forestry, construction, lawn and turf care. Deere also provides
financial services worldwide and manufactures and markets engines
used in heavy equipment. Somewhat offsetting these positive factors
is JDIC's poor operating performance recorded since operations came
to scale in 2011. Such outcomes have been driven by start-up costs
and (to a larger degree) significant weather events and changes in
commodity prices that have impacted results.
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Best’s
Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
A.M. Best CompanyMarc Liebowitz, 908-439-2200, ext.
5071Senior Financial
Analystmarc.liebowitz@ambest.comorGerard Altonji,
908-439-2200, ext. 5626Assistant Vice
Presidentgerard.altonji@ambest.comorChristopher Sharkey,
908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
Deere (NYSE:DE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Deere (NYSE:DE)
Historical Stock Chart
From Apr 2023 to Apr 2024