A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Farmers Mutual Fire Insurance Company of Marble, Pennsylvania. The outlooks of these Credit Ratings have been revised to stable from positive.
The ratings reflect Farmers Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The rating actions also reflect Farmer Mutual’s increased balance sheet strength, driven by its risk-adjusted capitalization being at the strongest level, significant growth in policyholders’ surplus over the past five years primarily driven by strong operating earnings, stable loss reserving trends, comprehensive reinsurance program with strong partners and a high-quality investment portfolio comprised of
a diverse blend of fixed-income securities and equity holdings. These positive rating attributes are offset somewhat by the company’s limited financial flexibility and scale.
This press release was featured in the PAMIC 360.