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As a result, key balance sheet strength metrics have weakened and no longer align with the strongest assessment, prompting a downgrade from “strongest” to “very strong.”<\/p>\nMembers of the Farm Bureau Property & Casualty Group have seen a 30% drop in surplus through Q2\u201924 due to significant catastrophe losses, including a major hailstorm in May and a wildfire in June, leading AM Best to downgrade its Issuer Credit Ratings.<\/p>\n
As a result, key balance sheet strength metrics have weakened and no longer align with the strongest assessment, prompting a downgrade from “strongest” to “very strong.”<\/p>\n
AM Best downgraded the Long-Term Issuer Credit Ratings from \u201ca+\u201d to \u201ca\u201d and affirmed the Financial Strength Rating of A for both Farm Bureau Property & Casualty Insurance Company and Western Agriculture Insurance Company, collectively known as the Farm Bureau Property & Casualty Group. The outlook for these ratings has been revised from stable to negative.<\/p>\n
The negative outlook reflects the significant volatility in the group’s operating results in recent years and ongoing pressure on its balance sheet strength.<\/p>\n
Since 2022, severe weather events and adverse reserve development have led to high combined ratios and substantial operating losses.<\/p>\n
If these operating performance trends continue, the group may fall further out of alignment with other adequately assessed companies.<\/p>\n
Management is working to address these challenges by adjusting pricing, increasing minimum deductibles, and refining underwriting strategies. However, the effectiveness of these measures remains uncertain.<\/p>\n
\u201cWith further deterioration in operating results, and\/or continued weakening of policyholders\u2019 surplus and key balance sheet strength metrics, the ratings are likely to be downgraded further,\u201d AM Best concluded.<\/p>\n
The post AM Best downgrades Farm Bureau P&C Group’s ratings on nat cat losses<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Members of the Farm Bureau Property & Casualty Group have seen a 30% drop in surplus through Q2\u201924 due to significant catastrophe losses, including a major hailstorm in May and a wildfire in June, leading AM Best to downgrade its Issuer Credit Ratings. As a result, key balance sheet strength metrics have weakened and no […]<\/p>\n","protected":false},"author":1,"featured_media":1602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1600"}],"collection":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=1600"}],"version-history":[{"count":2,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1600\/revisions"}],"predecessor-version":[{"id":1603,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/1600\/revisions\/1603"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/1602"}],"wp:attachment":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=1600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=1600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=1600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}