Best awards “A” Rating to Florida Farm Bureau Insurance Companies

CONTACT: Matt Packham, vice president, Technology, Products, Pricing and Planning, (352) 374-1538

(Gainesville, Fla.) – Florida Farm Bureau Casualty Insurance Company and Florida Farm Bureau General Insurance Companies have been rated A (Excellent) by A.M. Best Company. A Best’s Financial Strength Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile. It is an opinion of an insurer’s ability to meet its obligations to policyholders.

“We are pleased that A.M. Best has once again recognized the Florida Farm Bureau insurance companies with an A rating,” said Bill Courtney, executive vice president and CEO of the Florida Farm Bureau companies. “The rating recognizes our company’s conservative operating strategies while noting the challenges our companies continue to face from market, legislative and regulatory concerns.”

In a letter to Courtney, Best analysts noted the rating and outlook reflects the group’s strong risk-adjusted capitalization and extensive knowledge of the Florida marketplace. The rating also acknowledges the commitment and support received from its parent, Southern Farm Bureau Casualty Insurance Company, which is a leading personal lines insurance organization and markets a full complement of insurance products.

Best noted the group’s positive rating factors are derived from management’s conservative operating strategies, as evidenced by its high-quality investment portfolio, as well as its catastrophe management plan that avoids concentrations of risk within any given area of the state. The rating also recognizes the group’s favorable core operating performance in non-catastrophe years, derived from its disciplined underwriting and pricing approach, controlled business growth and efficiencies realized through automation initiatives. In addition, the group maintains a sustainable competitive advantage due to its extensive local market knowledge and low cost structure, both of which are fostered by its exclusive agency network. Further, the group benefits from its sponsorship by the Florida Farm Bureau Federation, which enhances customer loyalty and affinity. Best said these positive rating attributes are offset by the group’s exposure to catastrophic loss accumulation as well as market, legislative and regulatory concerns due to its business concentration in Florida.

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