AM Best has affirmed its ratings of several State Farm subsidiaries.
It has affirmed the Financial Strength Rating (FSR) of A++ (superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a++” of State Farm Mutual Automobile Insurance Company and its affiliates, State Farm Fire and Casualty Company and State Farm County Mutual Insurance Company of Texas. The rating agency has also affirmed the FSR of A- (excellent) and the Long-Term ICR of “a-” of HiRoad Assurance Company, the FSR of A (excellent) and the Long-Term ICR of “a” of Dover Bay Specialty Insurance Company, and the FSR of A- and the Long-Term ICR of “a-” of State Farm Florida Insurance Company. The outlook of these credit ratings is stable, AM Best said.
The ratings agency has also affirmed the FSR of A and the Long-Term ICR of “a+” of State Farm General Insurance Company. The outlook of the FSR is stable, while the outlook of the Long-Term ICR is negative. It has also affirmed the FSR of A- and the Long-Term ICR of “a-” of State Farm Indemnity Company and the FSR of A++ and the Long-Term ICR of “a+” of State Farm Life Insurance Company and State Farm Life and Accident Assurance Company.
The ratings agency has upgraded the FSR of State Farm Lloyds (Richardson, Texas) to A from A- and its Long-Term ICR from to “a” from “a-”. The outlook of these ratings was revised from stable to positive.
“The ratings of State Farm Mutual reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM),” AM Best said. “Additionally, the ratings reflect State Farm Mutual’s strong net income generation despite challenging market conditions in recent years, and AM Best’s expectation that the company will continue to generate solid earnings and maintain excellent risk-adjusted capitalization, despite the currently high state of economic uncertainty in the United States.
State Farm Mutual, together with its subsidiaries, comprises the largest personal lines insurance organization in the country in terms of direct written premiums, and the second-largest in terms of policyholder surplus.