Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

AM Best Maintains Under Review With Negative Implications Status for Credit Ratings of Farm Bureau Mutual Insurance Company of Arkansas, Inc.

AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Farm Bureau Mutual Insurance Company of Arkansas, Inc. (FBMICA) (Little Rock, AR).

The Credit Ratings (ratings) were initially placed under review with negative implications on Sept. 14, 2023, following considerable deterioration in policyholders’ surplus and other key balance sheet strength metrics through the first half of 2023. This triggered a material reduction in FBMICA’s overall level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Following this, management communicated their intent to follow through with various proposed strategies, which were aimed at strengthening the capital position and ultimately improving the level of risk-adjusted capitalization and other key balance sheet strength measures.

The company continues to refine its capital management strategy. In the meantime, the company implemented a quota share reinsurance agreement for a portion of the business and is in the process of implementing significant rate increases and underwriting revisions. Through Dec. 31, 2023, operating results remained relatively in line with results posted through June 30, 2023, just prior to when the ratings were initially placed under review. For 2023, FBMICA has reported a policyholders’ surplus decline of over 35%.

The ratings will remain under review until the company executes its capital improvement strategies and AM Best can properly evaluate FBMICA’s rating fundamentals operationally and financially post-transaction. If the company does not implement these plans as anticipated, nor do the strategic actions facilitate material improvement in key balance sheet strength metrics, the ratings likely will be downgraded.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.