United Farm Bureau of Indiana Ratings Affirmed; Countryway Downgraded

A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of the United Farm Bureau of Indiana Group (the Group) and two members, United Farm Family Mutual Insurance Company (Mutual) and UFB Casualty Insurance Company (UFB Casualty).

Concurrently, A.M. Best has downgraded the FSR to B++ (Good) from A- (Excellent) and ICR to “bbb+” from “a-” of Countryway Insurance Company (Countryway) (Syracuse, N.Y.). The outlook for all ratings is stable. All companies are domiciled in Indianapolis, IN, unless otherwise specified.

The ratings for the Group are based upon the consolidation of Mutual and its wholly owned subsidiaries, UFB Casualty and Countryway. UFB Casualty is 100 percent reinsured by Mutual.

The group’s ratings are primarily reflective of its strong capitalization and leading market position in Indiana where it is one of the largest property/casualty insurers and the largest provider of farmowners’ insurance.

These positive rating aspects are offset in part by the group’s below average earnings in recent years, which have been caused by more frequent and severe weather-related events and investment losses.

The downgrading of the ratings for Countryway is primarily a result of its continued poor operating performance and the challenges the company faces to improve profitability in very competitive markets.

These concerns are partially offset by recent actions to re-underwrite certain lines of business, reduce risk, control expenses and the implicit and explicit support of Mutual, which provides many essential services and has historically provided additional capital to Countryway when needed.

Source: A.M. Best

Topics Agribusiness Casualty Indiana