Best Affirms and Withdraws Farmers Mutual Ratings

A.M. Best Co. has affirmed the financial strength rating of ‘B’ (Fair) and the issuer credit rating of “bb” of Farmers Mutual Insurance Company (PA) of Elizabethtown, Penna. with a negative outlook.

Concurrently, Best withdrew the ratings and assigned a category NR-4 (Company Request) to Farmers Mutual. “These rating actions are at the request of Farmers Mutual’s management to be withdrawn from A.M. Best’s interactive rating process,” said the bulletin.

“The rating affirmations reflect Farmers Mutual’s present capital position. However, the outlook recognizes continuing pressure on the ratings owing to poor operating performance, which continues to stress Farmers Mutual’s risk-adjusted capitalization,” Best explained.

Source: A.M. Best – www.ambest.com