A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Mississippi Farm Bureau Casualty Insurance Co. in Jackson, Miss.
The rating actions reflect Mississippi Farm Bureau Casualty’s strong risk-adjusted capitalization, well-established regional market presence and significant risk management actions taken over the past several years to improve underwriting profitability. Mississippi Farm Bureau Casualty’s accomplishments reflect the success of operational and underwriting strategies implemented to strengthen its business profile while improving profitability.
In addition, Mississippi Farm Bureau Casualty has benefited from somewhat less severe weather-related claims activity, and has taken advantage of its network of longstanding and strong agency relationships. Increased use of modeling also has enhanced its risk selection and pricing capabilities. Overall risk-adjusted capitalization has improved as management took the necessary steps to de-risk its balance sheet and adopt an enterprise risk management process that contains a comprehensive catalog of risks and conservative risk tolerances.
Partially offsetting these positive rating factors is Mississippi Farm Bureau Casualty’s above-average loss ratio and geographic concentration in Mississippi, which exposes the group to potential weather-related losses. While the company maintains a well-established regional market presence, management has implemented a strategy to expand in the northern portion of Mississippi away from the Gulf Coast. The company profile is enhanced due to the Farm Bureau affiliation, as well as support from Southern Farm Bureau Casualty Insurance Company.
In future rating cycles, upward movement is possible if positive operating earnings are sustained together with the maintenance of solid overall risk adjusted capitalization and surplus growth through internal operations. Also, upward movement should be augmented by continued development of enterprise risk management to insulate the company from shock losses.
Downward pressure on the rating could occur as a result of adverse operating results coupled with a drop in overall risk-adjusted capitalization from severe catastrophic events, or if there are material changes to Mississippi Farm Bureau Casualty’s relationship with its parent, Southern Farm Bureau Casualty, which has provided it with past capital infusions, ongoing reinsurance protection as well as administrative and systems support.
Source: A.M. Best
Topics Trends Agribusiness Mississippi AM Best Casualty
Was this article valuable?
Here are more articles you may enjoy.
‘Dirty Dozen’ Unsafe Employers Putting Workers at Risk 
Update: Fannie Mae Guidelines Raise Concerns, Could Bar ACV Coverage for Homes 
Berkshire’s Jain on Cyber: ‘The Mindset Should Be You’re Not Making Money’ 
Miami Retirement Fund Class Action Alleges Globe Life Officers Concealed Fraud 
