A.M. Best has upgraded the Financial Strength Rating of Farmers Mutual Fire Insurance Company of Marble, Penn., to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-“. The outlooks of these Credit Ratings have also been revised to stable from positive, according to a press release issued by A.M. Best.
The ratings reflect Farmers Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The press release stated that the rating actions also reflect Farmers Mutual’s increased balance sheet strength, driven by its risk-adjusted capitalization being at the strongest level and significant growth in policyholders’ surplus over the past five years.
This is primarily a result of strong operating earnings, stable loss reserving trends, a comprehensive reinsurance program with strong partners and a high-quality investment portfolio comprised of a diverse blend of fixed-income securities and equity holdings. These positive rating attributes are offset somewhat by the company’s limited financial flexibility and scale, the press release said.
Source: A.M. Best
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