AM Best Revises Outlooks to Stable for Georgia Farm Bureau Group Members

AM Besthas revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” of Georgia Farm Bureau Mutual Insurance Co. and Georgia Farm Bureau Casualty Insurance Co., collectively referred to as the Georgia Farm Bureau Group(Georgia Farm Bureau). All companies are domiciled in Macon, Ga.

Best said the ratings reflect Georgia Farm Bureau’s balance sheet strength, which it categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks to stable reflects Georgia Farm Bureau’s improvement of its ERM program resulting from the implementation of a number of initiatives designed to reduce financial volatility, stabilize policyholder surplus and improve operating performance, Best said. Over the past two years, the group has lowered its underwriting leverage to levels commensurate with the composite average, improved its common stock leverage that effectively lowers its susceptibility to movements in the stock market, and enhanced its reinsurance program to better handle severity of weather losses.

In addition, in 2018, the group sustained its largest weather-related loss when Hurricane Michael made landfall in the fourth quarter of 2018. Best noted the group was able to report improved results in 2018 despite this large weather-related event, which highlights the material changes made to its overall ERM program. Further, management continues to be proactive by implementing underwriting initiatives to improve profitability going forward and closely managing its reserve levels to improve redundancy.

Source: AM Best