OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of Farm Bureau Town and Country Insurance Company of Missouri and New Horizons Insurance Company of Missouri. These companies are collectively called Missouri Farm Bureau Group. Concurrently, AM Best has revised the outlooks to negative from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Farm Bureau Life Insurance Company of Missouri (FBLICM). All companies are domiciled in Jefferson, MO.
The ratings reflect Missouri Farm Bureau Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Missouri Farm Bureau Group experienced a reduction in surplus in 2023 from underwriting losses from uncharacteristic storm activity. Although the group is taking appropriate measures to prevent future underwriting losses, operating performance challenges persisted through the first half of 2024, further reducing the group’s capitalization. This reduction, coupled with an increase in insurance risk, has strained the group’s overall balance sheet quality. Given that this quality likely will be impacted through the intermediate term, AM Best has revised the outlooks to negative. The group’s operating performance remains adequate as AM Best believes appropriate rate increases likely will be earned in the near term, alleviating further near-term challenges; however, a large rebound of surplus is less likely in this timeframe.
The ratings of FBLICM reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Given the negative pressures surrounding Missouri Farm Bureau Group, the organization’s lead rating unit, the negative outlooks reflect the possibility that the business profile assessment of FBLICM will be strained in the intermediate term.
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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
