OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating to “bbb+” from “bbb” and affirmed the Financial Strength Rating of “B++” of South Carolina Farm Bureau Mutual Insurance Company and Palmetto Casualty Insurance Company (together known as South Carolina Farm Bureau Group). The outlook of these Credit Ratings (ratings) remains stable. Both companies are domiciled in Cayce-West Columbia, SC.
These ratings reflect South Carolina Farm Bureau Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrade reflects the group’s improved operating performance metrics and reduced volatility observed over the past five years. Over the years, South Carolina Farm Bureau Group has focused on underwriting inland business and shifted from writing a significant amount of coastal business. Additionally, the company has increased its reinsurance top limit, lowered its probable maximum losses and terminated unfavorable business across its entire South Carolina territory. Collectively, these measures have improved performance metrics relative to the personal property composite averages.
In addition, the group has improved its risk profile notably by lowering the amount of gross underwriting exposures and common stock investments relative to surplus, over the past five years. The very strong level of balance sheet strength reflects the strong liquidity levels, conservative investment profile and comprehensive reinsurance protection. The limited business profile reflects the company’s geographic and product concentration in South Carolina, which exposes the group to frequent and severe weather-related events, as well as regulatory and economic changes.
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