FMG News
AM Best Rating
A.M. Best Rating
A.M. Best Affirms Rating of Farmers' Mutual Insurance Association and Farmers' Mutual Insurance Limited.
Oldwick, New Jersey, U.S.A, Sept. 22, 2005 - A.M. Best Co. has confirmed the financial strength rating of A- (Excellent) of FMG.
The rating reflects the group's strong capitalization, strong market presence in rural New Zealand, broad distribution capabilities and improving operating efficiency.
FMG's risk adjusted capitalization demonstrated reasonable growth during the year, due mainly to FMIA's and FMIL's strong operating performance. FMIA's combined ratio declined from 80.6% in 2004 to 74.3% in 2005. FMIL's combined ratio declined from 87.4% in 2004 to 74.4% in 2005. Intra-group transfer of assets contributed to substancial strengthening of FMIL's capitalization, as measured by Best's Capital Adequancy Ratio.
FMG has established a strong presence in the rural New Zealand market as a result of its long operating history. The group's commitment to self distribution of insurance products in these rural communities has resulted in relatively stable business growth.
FMIA AMBEST.doc(24.50 KB)
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