AM Best reports it has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Farmers Mutual Fire Insurance Company of Marble, Pennsylvania.
AM Best said the credit ratings reflect Farmers Mutual’s balance sheet strength, which AM Best analysts assess as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
According to the rating agency, the revision in the outlooks to stable from negative reflects improvement in Farmers Mutual’s underwriting and operating performance trends from earlier in the five-year period.
“Improvement in results has been a product of pricing adjustments to address economic inflation, as well as strategic underwriting initiatives by management to mitigate loss costs,” AM Best said. “Following a volatile year in 2023, the company recorded strong underwriting gains with sub-95 combined ratios in both 2024 and 2025, falling back in-alignment with the strong operating performance assessment.”
AM Best said it expects that Farmers Mutual’s operating results will continue to benefit from recently implemented profitability initiatives and that its strong operating performance trends will be sustained over the near term.
The ratings also reflect Farmers Mutual’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), along with its strong liquidity and conservative underwriting leverage metrics. The company has a limited business profile reflective of its position as a single-state personal property writer in Pennsylvania, which exposes results to potentially frequent and severe weather-related events, as well as possible competitive and/or regulatory challenges. “Overall, Farmers Mutual’s risk management capabilities are considered to be appropriate for its complexity of business and overall risk profile,” AM Best added.
Source: AM Best
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