OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Farm Bureau Mutual Insurance Company of Idaho and its indirect subsidiary, Western Community Insurance Company, collectively referred to as Farm Bureau of Idaho Group (Idaho Farm Bureau). All companies are domiciled in Pocatello, ID.
The Credit Ratings (ratings) reflect Idaho Farm Bureau’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revised outlooks to positive reflect Idaho Farm Bureau’s sustained profitability over the past three years, which resulted in underwriting and operating performance metrics that are becoming increasingly more comparable with those in the adequate category. The company’s improving results have benefited from management’s various underwriting initiatives, including rate increases, tightened underwriting guidelines and an improved reinsurance program. The positive outlooks also reflect AM Best’s expectation that volatility in Idaho Farm Bureau’s key operating metrics will remain moderate, inclusive of the impacts from weather-related events.
Idaho Farm Bureau’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), relatively conservative underwriting and loss-reserve leverage measures, a prudent investment portfolio and comprehensive reinsurance program. Idaho Farm Bureau’s neutral business profile reflects the group’s large market share, brand recognition and loyal customer base in Idaho across farm, home and auto clients. AM Best considers Idaho Farm Bureau’s ERM program to be appropriate for its size and scope of operations.
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