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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 03, 2015 11:14 AM (EST)
A.M. Best has commented that the financial strength rating of B++ (Good) and the issuer credit ratings of "bbb" of State Farm Lloyds (Dallas, TX) are unchanged following the announcement that it has reached a settlement agreement with the Texas Department of Insurance (TDI) and the Office of Public Insurance Council (OPIC) over homeowners' rates in place between Sept. 7, 2003 and July 31, 2008 for policyholders of non-tenant (homeowners), renters or condo policies during that time (not including new policies with effective dates from June 1, 2008 through July 31, 2008). The settlement is for $352.5 million and will be paid out to impacted State Farm Lloyds' policyholders and former policyholders over approximately 18 months. The outlook for all ratings is stable.
Following this settlement, the risk-adjusted capitalization and operating performance of State Farm Lloyds continue to remain within expectations consistent for the current rating level.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.
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