Credit ratings firm AM best has upgraded the financial strength and credit rating of Arkansas-based Farm Bureau Mutual Insurance.
The firm’s financial strength rating (FSR) was bumped up to an A- (excellent) from B++(good). Similarly, its long term issuer credit rating (long term ICR) moved up to an “a-“ from a “bbb+”. Overall, these credit ratings were revised from stable to positive.
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A Business Wire report credits the company’s “continued favorable operating performance” as the catalyst for the ratings upgrade based on its “solid” underwriting profits and “strong” surplus growth.
“The favorable results were driven by milder weather patterns in 2015 and 2016, and tighter underwriting standards such as rate adjustments, revision of deductibles and aggressive exposure management initiatives,” the report added.
