AM Best Affirms Credit Ratings of Members of Farmers Insurance Group
The ratings reflect Farmers' 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 Farmers' balance sheet strength reflects the group's very strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), stable loss reserve position, conservative investment portfolio and comprehensive reinsurance program. The ratings also consider Farmers' adequate operating performance, supported by a notable improvement in operating results in 2024.
In addition, management continues to implement meaningful initiatives to enhance underwriting performance through targeted pricing actions, refined risk-mitigation strategies, revised product offerings and further strengthening of underwriting oversight.
Partially offsetting these strengths are the group's elevated exposure to catastrophe losses and its reliance on approximately $2 billion in 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
-- 'bbb+' (Good) on USD 300 million 7.00% surplus notes, due 2064
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.
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