A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb+” of Louisiana Farm Bureau Mutual Insurance Company (Louisiana Farm Bureau) in Baton Rouge.
The outlook for both ratings has been revised to stable from positive, Best said.
The ratings reflect its solid risk-adjusted capitalization and favorable underwriting and operating results. While the company has benefited from somewhat milder weather patterns in recent years, it also has significantly improved underwriting profitability from a host of re-underwriting initiatives, including rate adjustments, increased management of risk exposures along coastal and inland areas, rigorous inspections of insured properties, prudent claims management and extensive reinsurance protection arrangements.
The stable outlook reflects the expected continuation of favorable operating performance and maintenance of solid risk-adjusted capitalization.
Partially offsetting these positive rating factors is the company’s geographic concentration of risk. As a single-state property writer with some coastal exposure, Louisiana Farm Bureau remains susceptible to frequent and severe weather events as well as judicial, economic and regulatory concerns.
Source: A.M. Best