Louisiana Farm Bureau’s ratings reflect its solid risk-adjusted capitalization and favorable underwriting and operating performance in recent years, as it has benefited from milder weather patterns as well as improved underwriting earnings from re-underwriting initiatives, including rate adjustments, and increased monitoring and management of risk exposures along both coastal and inland areas.
While the company is well positioned at its current rating level, a continuation of these favorable operating trends could result in further positive rating actions. Conversely, as a property writer in a single state with coastal exposures, it remains susceptible to severe weather events that could potentially adversely impact its operating results and surplus position, thereby placing negative pressure on the ratings.
While the mergers are expected to result in an entity with a significantly greater premium and capital base, along with a wider geographic spread, the ratings of
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.
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Assistant Vice President
Assistant Vice President, Public Relations