S&P’s lowered its counterparty credit and financial strength ratings on Iowa-based Farm Bureau Mutual Insurance Co. (Farm Bureau) and Western Agricultural Insurance Co. (Western Agricultural) to “BBBpi” from “Api.”
“Poor operating performance, declining capitalization, and geographic concentration,” were cited as reasons for the ratings action.
S&P’s also withdrew “Api” counterparty credit and financial strength ratings on Utah Farm Bureau Insurance Co. (Utah Farm Bureau) and Western Farm Bureau Mutual Insurance Co. (Western Farm Bureau) because these companies no longer exist.
Farm Bureau and Western Agricultural are the members of the Farm Bureau Mutual Pool. Farm Bureau makes up 87 percent of the pool, with Western Agricultural contributing the remaining 13 percent.
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