AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “bbb” (Good) of Louisiana Farm Bureau Insurance Company based in Baton Rouge. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Louisiana’s inclusion as a member of Southern Farm Bureau Casualty Group (Southern), which on a consolidated basis has a balance sheet strength that AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades for Louisiana reflect its 100% reinsurance quota share agreement with Southern Farm Bureau Casualty Insurance Company (Southern Casualty), the lead member of Southern, which was executed successfully, effective April 1, 2026.
On that same date, Louisiana demutualized and converted to a stock company, and Southern Casualty purchased all the stock of this newly formed company. Louisiana is now a wholly owned subsidiary of Southern Casualty, and cedes 100% of all premiums, losses and expenses to Southern Casualty. Louisiana has historically and will continue to receive operational support from Southern Casualty and will be supported fully underneath Southern’s catastrophe reinsurance tower.
For Louisiana, this transaction brings significant financial advantages and the ability to achieve cost savings through sharing and centralizing operational functions, and for Southern, it better aligns with its overall strategic goals and purposes, as well as provides linkage to a larger policyholders’ surplus base.
Source: AM Best
Topics
Louisiana
Agribusiness
AM Best
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