AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of Southern Farm Bureau Casualty Insurance Company, Colorado Farm Bureau Insurance Company (Colorado Farm Bureau) (both of Ridgeland, MS), Louisiana Farm Bureau Casualty Insurance Company (Baton Rouge, LA) and Mississippi Farm Bureau Casualty Insurance Company (Jackson, MS).
In addition, AM Best has removed from under review with positive implications and upgraded the FSR to A (Excellent) from B (Fair) and the Long-Term ICR to “a” (Excellent) from “bb” (Fair) of Arkansas Farm Bureau Insurance Company (Ridgeland, MS), formally Farm Bureau Mutual Insurance Company of Arkansas, Inc. The outlook assigned to these Credit Ratings (ratings) is stable. These companies are collectively referred to as Southern Farm Bureau Casualty Group.
The ratings reflect Southern Farm Bureau’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best said the revised outlooks reflect Southern Farm Bureau’s improved operating performance through 2024, and continued through year-to-date 2025. Results earlier in this five-year period were volatile, driven predominately by unfavorable trends in the auto market and increased catastrophe activity, which management addressed through sizable rate increases and adjustments to its underwriting criteria.
These actions led to improved rate adequacy and better selection of risks, which precipitated an underwriting profit and a combined ratio of 95.9% in 2024–over a 20-point improvement from the prior year, AM Best said.
This trend of profitability has continued through year-to-date 2025, despite ongoing losses due to weather-related events, demonstrating that Southern Farm Bureau’s results remain in-alignment with its adequate operating performance assessment.
The rating upgrades for Arkansas Farm Bureau Insurance Company reflect its 100% reinsurance quota share agreement with Southern Farm Bureau Casualty Insurance Company (Southern Casualty), which was successfully executed effective August 1, 2025. On that same date, Farm Bureau Mutual Insurance Company of Arkansas, Inc. demutualized and converted to a stock company, which was renamed Arkansas Farm Bureau Insurance Company (Arkansas Farm Bureau), and Southern Casualty purchased all the stock of this newly formed company.
Arkansas Farm Bureau is now a wholly owned subsidiary of Southern Casualty, and cedes 100% of all premiums, losses, and expenses to Southern Casualty. For Arkansas Farm Bureau, this transaction brings significant financial advantages and the ability to achieve cost savings through sharing and centralizing operational functions, and for Southern Farm Bureau, it better aligns with its overall strategic goals and purposes, as well as provides linkage to a larger policyholders’ surplus base.
Source: AM Best
Topics Trends Agribusiness AM Best Casualty
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