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A.M. Best Downgrades Issuer Credit Ratings of Bremen Farmers Mutual Insurance Company - Wireless News


Wireless News
12-27-2009
A.M. Best Downgrades Issuer Credit Ratings of Bremen Farmers Mutual Insurance Company
Type: News

A.M. Best Co. has downgraded the issuer credit rating (ICR) to 'bbb' from 'bbb+' and affirmed the financial strength rating of B++ (Good) of Bremen Farmers Insurance Company (Bremen, KS). The outlook for both ratings is stable.

The downgrading of the ICR for Bremen Farmers Mutual Insurance Company reflects the decline in surplus from underwriting losses that resulted from increased frequency of wind and hail storms, increased retention levels and a decline in net investment income.
The ratings recognize the company's strong, though weakened, level of risk-adjusted capitalization, conservative investment philosophy and reinsurance program. The ratings also recognize the company's long-standing market presence in Kansas and favorable overall liquidity measures.

These rating factors are partially offset by Bremen Farmers Mutual Insurance Company's elevated ceded reinsurance leverage measure and significant exposure to wind and hail losses. Additionally, the company's limited financial flexibility and current business profile as a single-state property writer expose it to increased competitive market conditions and regulatory and judicial changes.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/ methodology.

A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

More Information: www.ambest.com.

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