A.M. Best says the financial strength rating of B++ (Good) and the issuer credit ratings of “bbb” of State Farm Lloyds in Dallas are unchanged following the announcement that it has reached a settlement agreement in Texas over homeowner rate overcharges.
State Farm Lloyds settled with the Texas Department of Insurance (TDI) and the Office of Public Insurance Council (OPIC) over homeowners’ rates in place between Sept. 7, 2003 and July 31, 2008 for policyholders of non-tenant (homeowners), renters or condo policies during that time (not including new policies with effective dates from June 1, 2008 through July 31, 2008).
The settlement is for $352.5 million and will be paid out to impacted State Farm Lloyds’ policyholders and former policyholders over approximately 18 months. The outlook for all ratings is stable.
Following this settlement, the risk-adjusted capitalization and operating performance of State Farm Lloyds continue to remain within expectations consistent for the current rating level.
Source: A.M. Best
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