A.M. Best has upgraded the Long-Term Issuer Credit Rating to “a+” from “a” and affirmed the Financial Strength Rating of “A” of Farm Bureau Property & Casualty Insurance Co. and Western Agriculture Insurance Co., collectively known as Farm Bureau Property & Casualty Group.
Both companies are domiciled in West Des Moines, Iowa.
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable.
The rating upgrade reflects the group’s strong risk-adjusted capitalization, favorable operating performance and well-established market presence, according to A.M. Best.
The capital position further benefits from the group’s high-quality investment portfolio, consistently favorable loss reserve development trends and comprehensive reinsurance program. Additional strengths include its brand recognition, member service capabilities, exclusive agency force and its affiliation with Farm Bureau Federations, according to A.M. Best.
These positive rating factors are partially offset by the group’s geographic concentration in the Midwest, which exposes its earnings to catastrophe losses stemming from wind, hail, tornadoes and winter storms as observed through the first half of 2017, according to A.M. Best.
Topics Agribusiness Property AM Best Iowa Property Casualty Casualty
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