A.M. Best upgrades insurance agencies rating, outlook
by MBJ Staff
Published: March 11,2013
JACKSON — A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to “a-” from “bbb+” of Mississippi Farm Bureau Casualty Insurance Company.
The outlook for both ratings has been revised to stable from positive.
A.M. Best wrote: “Mississippi Farm Bureau’s ratings reflect its solid risk-adjusted capitalization and generally favorable underwriting and operating performance in years when it has benefited from milder weather patterns. Management also has taken numerous steps in recent years to improve earnings through re-underwriting initiatives, including rate adjustments and increased monitoring and management of risk exposures along both coastal and inland areas. Additionally, its comprehensive reinsurance program, which includes catastrophe reinsurance coverage, has helped to mitigate surplus declines in years with frequent and severe weather-related losses.
“Mississippi Farm Bureau’s ratings also recognize the support it receives from its ultimate parent, Southern Farm Bureau Casualty Insurance Company. Explicit support has taken the form of capital contributions including long-term surplus notes, as well as a provision of infrastructure, technology, back office operations and risk management resources. While the company is well positioned at its current rating level, as a property writer in a single state with coastal exposures, it remains susceptible to frequent and severe weather events that could adversely impact its operating results and surplus position, thereby placing potential negative pressure on the ratings.”
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