The Republican lawsuit targets reinsurance that helps insurance companies provide universal coverage without accounting for pre-existing conditions.
OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating of A
(Excellent) and issuer credit rating of “a” of Farmers New World Life
Insurance Company(FNWL) (Mercer Island, WA). The outlook for both
ratings is stable.
FNWL is owned by Farmers Group Inc. (Farmers), a leading provider
of personal lines insurance whose ultimate parent is Zurich Financial
FNWL's rating reflects its strategic role and synergies within the
Farmers Insurance Group, its excellent capitalization levels driven by
favorable earnings trends and investment portfolio de-risking
initiatives. The company continues to generate premium growth from
ongoing initiatives to strengthen its cross-selling opportunities within
the Farmers Insurance Group's property and casualty distribution channel.
Offsetting factors reflect aggregate investment losses in recent years
largely due the economic crisis, exposure to interest-sensitive
collateralized mortgage-backed securities and disintermediation risk due
to an annuity block with minimal surrender charge protection.
A.M. Best believes Farmers New World is well positioned at its current
rating level for the foreseeable future. Factors that could result in
negative rating actions include a significant decline in risk-adjusted
capitalization as measured by Best's Capital Adequacy Ratio model or a
sustained deterioration in earnings.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include:
“Understanding BCAR for Life/Health Insurers”; “Risk Management and the
Rating Process for Insurance Companies”; and “A.M. Best’s Liquidity
Model for U.S. Life Insurers.” Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. BestLouis Savarese, 908-439-2200, ext. 5168Senior
Morrow, 908-439-2200, ext. 5378Senior Manager, Public
Pargeans, 908-439-2200, ext. 5359Assistant Vice Presidentwilliam.firstname.lastname@example.orgJim
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Source: A.M. Best Co.