Standard & Poor’s Ratings Services announced that it has lowered its counterparty credit and financial strength ratings on West Virginia-based Farmers & Mechanics Mutual Insurance Co. to ‘Bpi’ from ‘BBpi’ “because of F&M’s continuing weak operating performance, geographic concentration, and reduced capitalization and surplus levels.”
S&P indicated that the company, which began doing business in 1878, “writes mainly homeowners multi-peril, fire, and farmowners insurance in West Virginia, which is its only licensed state.”
It operates primarily through independent agents, and is unaffiliated with any other insurance company. The ratings are on a “stand-alone basis,” noted S&P credit analyst Alan Koerber.
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