OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a-” of Farmers Mutual Fire Insurance Company of Marble, Pennsylvania (Farmers Mutual) (Marble, PA). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.
The ratings reflect Farmers Mutual’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The rating actions reflect also Farmer Mutual’s increased balance sheet strength, driven by its risk-adjusted capitalization being at the strongest level, significant growth in policyholders’ surplus over the past five years primarily driven by strong operating earnings, stable loss reserving trends, comprehensive reinsurance program with strong partners, and a high-quality investment portfolio comprised of a diverse blend of fixed-income securities and equity holdings. These positive rating attributes are offset somewhat by the company’s limited financial flexibility and scale.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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