Standard & Poor’s Ratings Services said it has affirmed its “A” counterparty credit and financial strength ratings on Los Angeles-based Farmers Insurance Exchange and its operating subsidiaries and affiliates. The outlook on these entities remains stable.
S&P said the ratings reflect Farmers’ competitive positioning in the U.S. personal property/casualty insurance marketplace; the group’s strategic importance to Farmers Group Inc. (A+/Positive/–), a core unit of Zurich Financial Services; and strong operating performance. Partially offsetting these strengths are the group’s somewhat below-average capital strength for the current rating structure, some concentration of business in Texas and California (two states prone to natural catastrophe and regulatory risk), and competitive pressures.
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