OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” of the Colorado Farm Bureau Mutual Insurance Company (Colorado Farm Bureau) (Centennial, CO).
The outlook revisions to stable are due the company’s improved risk-adjusted capitalization (as measured by Best’s Capital Adequacy Ratio) and improved operating performance seen in recent years. Further, rate and numerous underwriting actions have successfully aided in the improvement of the company’s performance, considering frequency and severity of catastrophe losses have not abated in Colorado in recent years, including 2016.
The ratings affirmations reflect comprehensive reinsurance protection, and risk management and exposure initiatives that have materialized favorably by producing improved levels of risk-adjusted capitalization and profitable operating performance.
Partially offsetting these positive factors is the company’s continued exposure to frequency and severe weather events such as wildfire and tornado/hail events, which in recent years have adversely impacted underwriting results and reduced Colorado Farm Bureau’s surplus position.
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