A.M. Best Affirms Ratings of Farmers New World Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit rating of “a” of Farmers New World Life Insurance Company (FNWL) (Mercer Island, WA). The outlook for both ratings is stable.

The ratings of FNWL are based on the company's role within the Farmers Insurance Group which gives it access to the Farmers multi-line agency force. The ratings also reflect FNWL's profitable statutory operating results, growth in life insurance premium and favorable risk-adjusted capitalization. Partially offsetting these factors are the company's exposure to interest sensitive collateralized mortgage-backed securities, declining statutory earnings in its core ordinary life line and block of annuity business with little or no surrender charge protection products.

FNWL is owned by Farmers Group Inc. (Los Angeles, CA), a leading provider of personal lines insurance, whose ultimate parent is Zurich Financial Services.

For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.