AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of Farm Bureau Town and Country Insurance Company of Missouri and New Horizons Insurance Company of Missouri. These companies are collectively called Missouri Farm Bureau Group. Concurrently, AM Best has revised the outlooks to negative from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Farm Bureau Life Insurance Company of Missouri (FBLICM). All companies are domiciled in Jefferson, MO.

The ratings reflect Missouri Farm Bureau Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Missouri Farm Bureau Group experienced a reduction in surplus in 2023 from underwriting losses from uncharacteristic storm activity. Although the group is taking appropriate measures to prevent future underwriting losses, operating performance challenges persisted through the first half of 2024, further reducing the group’s capitalization. This reduction, coupled with an increase in insurance risk, has strained the group’s overall balance sheet quality. Given that this quality likely will be impacted through the intermediate term, AM Best has revised the outlooks to negative. The group’s operating performance remains adequate as AM Best believes appropriate rate increases likely will be earned in the near term, alleviating further near-term challenges; however, a large rebound of surplus is less likely in this timeframe.

The ratings of FBLICM reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Given the negative pressures surrounding Missouri Farm Bureau Group, the organization’s lead rating unit, the negative outlooks reflect the possibility that the business profile assessment of FBLICM will be strained in the intermediate term.

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