AM Best Affirms Credit Ratings of Farmers New World Life Insurance Company
February 1, 2020 by A.M. Best
OLDWICK, N.J.–(BUSINESS WIRE)–AM 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) (Bellevue, WA). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect FNWL’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also recognize the continued 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.
Additionally, the ratings reflect the continued strongest risk-adjusted capitalization, historically positive earnings trend and material contributions to the overall group in terms of new business value and operating profits. Partially mitigating factors include relatively flat premium trends, high use of reinsurance through highly rated unaffiliated and affiliated entities and muted capital growth, as earnings historically have been offset by dividends to its parent.
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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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