AM Best Affirms Credit Ratings of Michigan Farm Bureau Group Members; Upgrades Credit Ratings of Cincinnati Equitable Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Farm Bureau Mutual Insurance Company of Michigan and Farm Bureau General Insurance Company of Michigan, collectively referred to as Michigan Farm Bureau Group (the Group). Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” of Farm Bureau Life Insurance Company of Michigan and Leaders Life Insurance Company (Tulsa, OK). In addition, AM Best has upgraded the FSR to A (Excellent) from B++ (Good) and the Long-Term ICR to “a” from “bbb+” of Cincinnati Equitable Life Insurance Company (CELIC) (Cincinnati, OH). These three companies comprise the Michigan Farm Bureau Life Group (MFBL). The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Lansing, MI, except where specified.

The ratings of the Group reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The Group benefits from strong risk-adjusted capitalization, favorable five-year operating performance, supported by actions to improve profitability and reduce risk, and sound business profile in Michigan. The ratings recognize the Group’s improved operating performance in recent years and its affiliation with the Michigan Farm Bureau. Partially offsetting these favorable rating factors are the Group’s unfavorable underwriting results in the beginning of the most recent five-year period and its primarily single-state concentration of risk in Michigan.

The ratings of MFBL reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The life insurance group benefits from strong risk-adjusted capitalization, consistent profitability in the most recent five-year period and a relatively low-risk product offering. Offsetting these positive rating factors is the exposure to a closed book of high minimum guarantee universal life insurance products and potential, albeit gradual, spread compression.

The upgrade to the ratings of CELIC reflect its strategic integration into MFBL through its shared management and board of directors, as well as ongoing consolidation of its investment, finance and actuarial services. Additionally, there is an explicit unconditional and absolute guarantee of CELIC’s liabilities from the Farm Bureau Life Insurance Company of Michigan.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Brian Lynch

Financial Analyst

+1 908 439 2200, ext. 5279

brian.lynch@ambest.com



Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com



Keith Behrmann

Senior Financial Analyst

+1 908 439 2200, ext. 5733

keith.behrmann@ambest.com



Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best