OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Farmers New World Life Insurance Company (FNWL) (Bellevue, WA). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect FNWL’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also recognize the continued strategic value FNWL provides to its ultimate parent, Zurich Insurance Group Ltd, in marketing primarily life insurance products through a network of exclusive Farmers agents.
Additionally, the ratings reflect the continued strongest risk-adjusted capitalization, historically positive earnings trend and material contributions to the overall group in terms of new business value and operating profits. Partially mitigating factors include relatively flat premium trends, high use of reinsurance through highly rated unaffiliated and affiliated entities and muted capital growth, as earnings historically have been offset by dividends to its parent.
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