AM Best Affirms Credit Ratings of Members of Farmers Insurance Group
July 03 2024 - 2:00PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” (Excellent) of the members of Farmers Insurance Group
(Farmers). At the same time, AM Best has affirmed the Long-Term
Issue Credit Ratings (Long-Term IR) of “bbb+” (Good) on the
outstanding surplus notes of Farmers Insurance Exchange (Woodland
Hills, CA) and Farmers Exchange Capital (Wilmington, DE). The
outlook of these Credit Ratings (ratings) is stable. (Please see
below for a detailed listing of the companies and ratings.)
The ratings of Farmers reflect its balance sheet strength, which
AM Best assesses as strong, as well as its adequate operating
performance, favorable business profile and appropriate enterprise
risk management.
The overall assessment of the group’s balance sheet strength
reflects its stable loss reserve position, conservative investment
portfolio and comprehensive reinsurance program. Additionally, the
ratings reflect Farmers’ adequate operating performance, which
remains in line with peers despite elevated catastrophe losses in
2023. Management has implemented considerable measures to enhance
its underwriting performance through targeted pricing actions and
risk-mitigation strategies, revised product offerings and stronger
underwriting oversight. Partially offsetting these strengths is
Farmers’ high exposure to catastrophe losses and reliance on
approximately $1.75 billion of surplus notes.
The FSR of A (Excellent) and the Long-Term ICRs of “a”
(Excellent) have been affirmed with stable outlooks for the
following members of Farmers Insurance Group:
- 21st Century Casualty Company
- 21st Century Centennial Insurance Company
- American Federation Insurance Company
- 21st Century Insurance Company
- 21st Century North America Insurance Company
- 21st Century Pinnacle Insurance Company
- 21st Century Premier Insurance Company
- American Pacific Insurance Company, Inc.
- Bristol West Casualty Insurance Company
- Bristol West Insurance Company
- Bristol West Preferred Insurance Company
- Civic Property and Casualty Company
- Coast National Insurance Company
- Exact Property and Casualty Company
- Farmers Insurance Company, Inc.
- Farmers Insurance Company of Arizona
- Farmers Insurance Company of Idaho
- Farmers Insurance Company of Oregon
- Farmers Insurance Company of Washington
- Farmers Insurance Exchange
- Farmers Insurance Hawaii, Inc.
- Farmers Insurance of Columbus, Inc.
- Farmers New Century Insurance Company
- Farmers Specialty Insurance Company
- Farmers Texas County Mutual Insurance Company
- Farmers Lloyds Insurance Company of Texas
- Fire Insurance Exchange
- Foremost County Mutual Insurance Company
- Foremost Insurance Company Grand Rapids, Michigan
- Foremost Lloyds of Texas
- Foremost Property and Casualty Insurance Company
- Foremost Signature Insurance Company
- Illinois Farmers Insurance Company
- Mid-Century Insurance Company
- Mid-Century Insurance Company of Texas
- Neighborhood Spirit Property and Casualty Company
- Security National Insurance Company
- Texas Farmers Insurance Company
- Toggle Insurance Company
- Truck Insurance Exchange
- Economy Fire & Casualty Company
- Economy Preferred Insurance Company
- Economy Premier Assurance Company
- Farmers Property and Casualty Insurance Company
- Farmers Casualty Insurance Company
- Farmers Direct Property and Casualty Insurance Company
- Farmers Group Property and Casualty Insurance Company
The following Long-Term IRs have been affirmed with stable
outlooks:
Farmers Insurance Exchange— -- “bbb+” (Good) on USD 400 million
4.747% surplus notes, due 2057
Farmers Exchange Capital— -- “bbb+” (Good) on USD 500 million
7.05% surplus notes, due 2028 (USD 375.0 million outstanding) --
“bbb+” (Good) on USD 150 million 7.2% surplus notes, due 2048 (USD
138.5 million outstanding) -- “bbb+” (Good) on USD 335 million
6.151% surplus notes, due 2053 -- “bbb+” (Good) on USD 500 million
5.454% surplus notes, due 2054
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 use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
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. For more information,
visit www.ambest.com.
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1925 thomas.keelan@ambest.com Edin Imsirovic
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908 882 2318 al.slavin@ambest.com