AM Best Revises Issuer Credit Rating Outlook to Positive for American Agricultural 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 (Excellent) and the Long-Term ICR of “a” (Excellent) of American Agricultural Insurance Company (AmericanAg) (Indianapolis, IN). The outlook of the FSR is stable.

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

The positive outlook on AmericanAg’s Long-Term ICR reflects sustained improvements in its operating performance in recent years, driven by improvement in underwriting metrics and a steadily increasing investment income. The improved underwriting performance stems from the combined effects of significant rate increases, improved risk and exposure management, as well as milder weather as events have been earnings events and have not eroded its capital position. In addition, there has been a strengthening of AmericanAg’s overall revenue stream resulting in a more robust book of business, an increase in its direct crop business, as well as the addition of the non-risk bearing business, which not only contributes to net income, but is also expected to provide stability to earnings during softening market cycles. The company is on track to report profitable results through the first six months of 2026. In 2024 and 2025, AmericanAg reported the best years in its history. These results were achieved despite the company paying its most losses ever in 2024, and its third highest loss payout in 2025. AmericanAg’s balance sheet strength, which AM Best assesses as strongest, continues to be supported by its strongest level of risk adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, AmericanAg maintains stable loss reserving trends, adequate liquidity measures, enhanced by generally positive operating cash flows and a comprehensive reinsurance program with strong reinsurance partners. A prudent investment portfolio generates a steady stream of investment income.

AmericanAg’s business profile is assessed as neutral. AmericanAg primarily serves as a provider of reinsurance products and services for Farm Bureau organizations throughout the United States. The company also participates in domestic and international reinsurance programs through the broker marketplace, which includes a diverse mix of business in the domestic and international marketplaces.

AmericanAg maintains a well-developed ERM program, inclusive of a formal ERM framework, which remains appropriate for the complexity of its risk profile, as well as a comprehensive reinsurance program that is a key component of its ERM strategy.

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