OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the members of Farmers Insurance Group (Farmers). Concurrently, AM Best has affirmed the Long-Term ICR of “a” of Farmers’ management company and attorney-in-fact, Farmers Group, Inc. (Nevada) (FGI), as well as the Long-Term Issue Credit Ratings (Long-Term IR) of “bbb+” on the outstanding surplus notes of Farmers Insurance Exchange (Exchange) (Woodland Hills, CA) and Farmers Exchange Capital. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Los Angeles, CA, unless otherwise specified. (Please see the link below for a detailed listing of the companies and ratings).
The ratings of Farmers reflect the group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). Farmers’ operating performance continues to improve as the company has implemented considerable measures to enhance its underwriting performance through targeted pricing actions and risk-mitigation strategies, revised product offerings and strengthening of underwriting controls. Partially offsetting these strengths is Farmers’ high exposure to catastrophe losses and reliance on over $2 billion of surplus notes.
A complete listing of Farmers Group, Inc.’s FSRs, Long-Term ICRs and Long- and Short-Term IRs is available.
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