AM Greatest Revises Outlook for Georgia Farm Bureau Corporations

The AM Greatest monetary ranking agency has barely downgraded the credit standing outlook for 2 Farm Bureau corporations after climate losses and an increase in reinsurance prices and inflation.

The monetary power ranking remained at “B++ (Good)” for Georgia Farm Bureau Mutual Insurance coverage Co. and Georgia Farm Bureau Casualty Insurance coverage Co., and the group’s stability sheet is powerful, AM Greatest stated in a information launch Friday. However the long-term issuer credit standing was notched downward, from “optimistic” to “secure.”

Georgia Farm Bureau Group, primarily based in Macon, has taken steps to enhance underwriting outcomes and publicity administration, by instituting charge will increase, modifications in deductibles and tighter underwriting tips, “all of which have been efficient in bettering outcomes from earlier years within the group’s historical past.”

“Nonetheless, the revised outlook for the long-term ICR (issuer credit standing) displays underwriting volatility exhibited by Georgia Farm Bureau in newer years, pushed primarily by a rise in weather-related loss exercise, elevated reinsurance retention and rising severity due to inflation,” the ranking agency stated.

The losses led to a better mixed ratio, of 108.3, for 2022 and into 2023. Hurricane Idalia, which struck components of south Georgia in late August and early September, may also have an effect and can stress total internet outcomes for the yr, AM Greatest famous.

Related: AM Best Revises US Homeowners Segment to Negative as Losses Persist

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