OLDWICK, N.J. – AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb+” of Farmers Insurance Company of Flemington (FICF) (Flemington, NJ). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect FICF’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.The rating upgrades are the result of favorable trends in FICF’s balance sheet strength, including improved risk-adjusted capitalization, decreased common stock leverage and consistently favorable loss reserve development. AM Best’s balance sheet strength assessment of very strong is supported by FICF’s risk-adjusted capitalization being at the strongest level, along with favorable liquidity measures and moderate catastrophe exposure net of reinsurance. These positive factors were hindered somewhat in past years by elevated tail-risk exposure and underwriting leverage ratios, both of which have continued to display improvement in recent years.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Kenneth E. Tappen
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