AM Best Revises Issuer Credit Rating Outlook to Positive for Southern Farm Bureau Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Southern Farm Bureau Life Insurance Company (Southern Farm Bureau Life) (Jackson, MS). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Southern Farm Bureau Life’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The positive outlook on the Long-Term ICR reflects Southern Farm Bureau Life’s growing individual life line of business, as well as its consistent trend in net income year over year, while remaining within the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Southern Farm Bureau Life’s operating performance has exhibited consistent growth in top line premium, driven by the company’s diverse network of associated Farm Bureau Federations across 11 states. In addition, operating results are supported by the company’s favorable market position in Farm Bureau communities and its loyal policyholder base, which are reflected in a good persistency trend. Management’s execution of the overall strategy has led to a trend of strong earnings on an operating and net basis.

The company’s business profile remains favorable as Southern Farm Bureau Life continues to utilize effective cross-selling opportunities with affiliates while maintaining an exclusive multi-line agency force. The company’s ERM program continues to be appropriate and includes proper risk management and governance functions. Overall, AM Best expects Southern Farm Bureau Life’s balance sheet strength to remain at the strongest level, driven by its conservative investment strategy, strong cash flows and sustained organic earnings.

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