OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” of Farm Bureau Mutual Insurance Company of Arkansas, Inc. (Arkansas Farm Bureau) (Little Rock, AR). The outlook of these Credit Ratings has been revised to stable from positive.
The upgrade of the FSR and Long-Term ICR reflects Arkansas Farm Bureau’s continued favorable operating performance as reflected in its solid underwriting and pre-tax operating profits, along with its strong surplus growth, which has further boosted its already favorable overall risk-adjusted capitalization (as measured by Best’s Capital Adequacy Ratio). The favorable results were driven by milder weather patterns in 2015 and 2016, and tighter underwriting standards such as rate adjustments, revision of deductibles and aggressive exposure management initiatives.
Partially offsetting these positive rating factors are the company’s single state concentration in Arkansas and correlation between products. These factors are mitigated by the company’s strong position in Arkansas’ farm segment and comprehensive reinsurance program.
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.
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