AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of “bbb+” (Good) for the members of Texas Farm Bureau Insurance Group (the group). The outlook of the FSR is stable. All companies are domiciled in Waco, TX. See below for a detailed listing of companies and Credit Ratings (ratings).
The ratings reflect Texas Farm Bureau Insurance Group’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revision of the outlook to stable from negative for the Long-Term ICRs reflects improvement in the group’s recent operating performance metrics driven by management’s various initiatives including rate increases and underwriting refinement, as well as more benign weather. The stable outlooks reflect AM Best’s expectation that volatility will remain within manageable levels in the intermediate term, despite the group’s inherent weather-related exposure.
AM Best assesses Texas Farm Bureau Insurance Group’s balance sheet strength as strong, reflective of the group’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), adequate liquidity, favorable calendar year reserve development, conservative common stock leverage and a comprehensive reinsurance program.
AM Best assesses Texas Farm Bureau Insurance Group’s operating performance as marginal and takes into account volatility in underwriting performance, which has started to improve slowly. Profitability was challenged due to severe weather, inflationary pressures, increased cost of reinsurance and an increase in total loss severity. However, starting with the second half of 2025, and continuing up to the first nine months of 2026, underwriting profitability has improved materially due to the combined impact of various risk management and profitability initiatives earning out and an improved reinsurance market, as well as calmer weather. While most key profitability metrics continue to fall short of the private passenger standard auto and homeowners composite on a five-year average basis, a positive trend in operating performance has been observed.
AM Best assesses the business profile as neutral, supported by the group’s market penetration as a leading personal lines writer in Texas, along with its broad product offering. In addition, the assessment considers the group’s relationship with the Texas Farm Bureau, which enhances customer loyalty and affinity.
Lastly, AM Best assesses the group’s ERM as appropriate, supported by a well-developed framework that aligns well with the risk profile and includes catastrophe risk management, a conservative investment philosophy, comprehensive disaster recovery program and a formalized succession plan.
The FSR of B++ (Good) and the Long-Term ICRs of “bbb+” (Good) have been affirmed, with the Long-Term ICR outlook revised to stable from negative, while the outlook of the FSR is stable for the following members of Texas Farm Bureau Insurance Group:
- Texas Farm Bureau Casualty Insurance Company
- Farm Bureau County Mutual Insurance Company of Texas
- Texas Farm Bureau Mutual Insurance Company
- Texas Farm Bureau Underwriters
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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