AM Best Revises Issuer Credit Rating Outlook to Positive for Southern Farm Bureau Life Insurance Company
24 Abril 2024 - 7:32AM
Business Wire
AM Best has revised the outlook to positive from stable
for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed
the Financial Strength Rating (FSR) of A+ (Superior) and the
Long-Term ICR of “aa-” (Superior) of Southern Farm Bureau Life
Insurance Company (Southern Farm Bureau Life) (Jackson, MS). The
outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Southern Farm Bureau Life’s
balance sheet strength, which AM Best assesses as strongest, as
well as its adequate operating performance, favorable business
profile and appropriate enterprise risk management (ERM).
The positive outlook on the Long-Term ICR reflects Southern Farm
Bureau Life’s growing individual life line of business, as well as
its consistent trend in net income year over year, while remaining
within the strongest level of risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR). Southern Farm
Bureau Life’s operating performance has exhibited consistent growth
in top line premium, driven by the company’s diverse network of
associated Farm Bureau Federations across 11 states. In addition,
operating results are supported by the company’s favorable market
position in Farm Bureau communities and its loyal policyholder
base, which are reflected in a good persistency trend. Management’s
execution of the overall strategy has led to a trend of strong
earnings on an operating and net basis.
The company’s business profile remains favorable as Southern
Farm Bureau Life continues to utilize effective cross-selling
opportunities with affiliates while maintaining an exclusive
multi-line agency force. The company’s ERM program continues to be
appropriate and includes proper risk management and governance
functions. Overall, AM Best expects Southern Farm Bureau Life’s
balance sheet strength to remain at the strongest level, driven by
its conservative investment strategy, strong cash flows and
sustained organic earnings.
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 use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
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 London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
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Brent DeAngelis Financial Analyst +1 908 882
1730 brent.deangelis@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Jacqalene Lentz Director +1 908 882 2011
jacqalene.lentz@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com