OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from positive for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Georgia Farm Bureau Mutual Insurance Company and Georgia Farm Bureau Casualty Insurance Company, collectively referred to as the Georgia Farm Bureau Group (Georgia Farm Bureau). Both companies are domiciled in Macon, GA. The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Georgia Farm Bureau’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The group continues to employ strategic initiatives aimed at bettering results and enhancing exposure management, including rate increases, deductible changes, tighter underwriting guidelines and risk-based scoring models, all of which have been effective in improving results from earlier years in the group’s history. However, the revised outlook for the Long-Term ICR reflects underwriting volatility exhibited by Georgia Farm Bureau in more recent years, driven mainly by an increase in weather-related loss activity, increased reinsurance retention and rising severity because of inflation. This led to a combined ratio of 108.3 through 2022, which has remained elevated as of year-to-date 2023. Further, the group’s results were recently impacted by Hurricane Idalia which struck parts of Southern Georgia. While the full impact of this event remains unknown at this time and will be well contained within the group’s reinsurance protection, it will pressure overall net results for the full year.
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