Best’s News & Research Service - February 14, 2018 03:59 PM (EST)
A.M. Best Affirms Credit Ratings for Farmers New World Life Insurance Company
- February 14, 2018 03:59 PM (EST)
Oldwick //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Farmers New World Life Insurance Company (FNWL) (Mercer Island, WA). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Farmers New World Life’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings recognize the strategic value FNWL provides to its ultimate parent, Zurich Insurance Group Ltd, in marketing primarily life insurance products through a network of exclusive Farmers agents.
Partially mitigating factors are relatively flat premium trends, high use of reinsurance through highly rated unaffiliated companies and affiliated entities, muted capital growth as earnings historically have been offset by dividends to its parent and a moderately higher allocation to below investment grade bonds when compared with peer benchmarks. In addition, FNWL has shifted allocations to less liquid asset classes, most notably commercial mortgages, in which FNWL was historically underweight.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.