A.M. Best Revises Outlooks to Positive for Louisiana Farm Bureau Mutual Insurance Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Louisiana Farm Bureau Mutual Insurance Company (Louisiana Farm Bureau) (Baton Rouge, LA).

The ratings reflect Louisiana Farm Bureau’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks are based on the consistent trend in operating performance driven by Louisiana Farm Bureau’s undertaking in recent years to significantly re-underwrite its book of business, which included reducing business written in tier-1 coastal areas, sizeable rate adjustments, higher deductibles and vastly improved risk management techniques. These initiatives have resulted in significant improvement in returns, even during hurricanes Isaac (2012), and Harvey and Nate in 2017, which the company weathered through profitably while growing policyholder surplus. Consistent underwriting results, coupled with solid investments gains, have resulted in 10 consecutive years of pre-tax operating gains and surplus appreciation.

The limited business profile reflects the company’s geographic concentration of risk in a coastal state. As a single state writer in Louisiana, the company is exposed to severe hurricane events, as well as regulatory concerns. However, the ERM is viewed as appropriate given its concentrated risk profile and elevated but effective reinsurance dependence.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Angelo Lozano, CFA, ARe, , +1-908-439-2200, ext. 5169

Financial Analyst

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or

Richard Attanasio, +1-908-439-2200, ext. 5432

Senior Director

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or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

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or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

[email protected]