Louisiana Farm Bureau Mutual Insurance Company of Baton Rouge recently had its financial strength rating increased from “B++” to “A-“ by A.M. Best. The insurer’s issuer credit rating was also raised from “BBB+” to “A-“.
It was due to Louisiana Farm Bureau’s reliable risk-adjusted capitalization, satisfactory underwriting, and operating results that its ratings surged. The company also improved upon its underwriting profitability thanks to improvements such as rate adjustments, exhaustive inspections of insured properties, judicious claims management, and so on.
It is hoped that Louisiana Farm Bureau continues such optimal performance and maintenance of strong risk-adjusted capitalization.
Despite these advantages, Louisiana Farm Bureau is located in a coastal area vulnerable to frequent and inclement weather events. This raises several judicial, economic, and regulatory concerns for the company, preventing its rating from climbing any higher.
