Kentucky Farm Bureau Mutual Insurance Company Comments on A.M. Best Rating Changes

Kentucky Farm Bureau (KFB) Mutual Insurance Company has been assigned an "A" (Excellent) financial strength rating with a stable outlook by A.M. Best Company, a change from its previous "A+" (Superior) rating. A.M. Best also assigned KFB Mutual Insurance the issuer credit rating of "a+" with a negative outlook, a change from its previous rating of "aa-."

"An 'A' (Excellent) rating affirms our financial strength," said KFB Insurance Executive Vice President and CEO, Bradley R. Smith</person>. "Every insurance company in the region has been hit hard over the past few years with this unusual string of strong, damaging storms. Kentucky Farm Bureau Insurance has responded by being here for our policyholders and members."

In making its rating decision, A.M. Best cited KFB Mutual Insurance's unfavorable operating performance in light of adverse weather events over the last four years as reasons for the ratings changes. Offsetting factors noted by A.M. Best include KFB Mutual Insurance's "strong, liquid balance sheet and an excellent business profile in Kentucky."

Smith further noted, "We are very proud of our company's history as a strong and healthy insurance provider, equipped with a dedicated claims staff throughout our state and agencies in all 120 counties. As indicated by A.M. Best, Kentucky Farm Bureau Insurance maintains strong capitalization, and we are readily meeting commitments to our policyholders and members throughout Kentucky. Even so, we will continue to take the measured steps needed to reinforce our financial strength, manage our costs and keep our service levels high."

"Our rating addresses the volatility of the region's uncontrollable and unpredictable weather," concluded Smith.

Despite intense competition within the industry, Kentucky Farm Bureau Mutual Insurance Company remains the largest property and casualty insurer in the state. For more information, visit www.kyfb.com.