A.M. Best Affirms Financial Strength Ratings
By Pekin Insurance · Sep 22, 2020 ·0 min read
The Farmers Automobile Insurance Association and Pekin Insurance Company
A.M. Best has affirmed the Financial Strength Rating (FSR) of “A-” (Excellent) of Pekin Insurance® Group and our two intercompany pool members, The Farmers Automobile Insurance Association and its wholly-owned subsidiary, Pekin Insurance Company. Financial Strength Ratings are published in A.M. Best’s Insurance Reports and represent their independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The affirmed rating reflects our balance sheet strength which A.M. Best categorizes as very strong, neutral business profile, and appropriate enterprise risk management. A.M. Best continues to assess our operating performance as marginal due to volatile underwriting results. Strong risk-adjusted capitalization is driven by our high-quality investment portfolio with adequate liquidity and historically favorable loss reserve developments. This rating acknowledges our expectation for reduced volatility in operating results based on underwriting initiatives and upgraded technology while maintaining balance sheet strength. A.M. Best also noted management’s efforts to continually enhance our enterprise risk management program to support our organization’s risk profile. The outlook for the FSR remains stable.
Pekin Life Insurance Company
A.M. Best has also affirmed the FSR of “A-” (Excellent) for Pekin Life Insurance Company. The outlook remains stable. The ratings of Pekin Life Insurance Company reflect its strategic role and positive contribution to the Pekin Insurance® Group, as well as its strong risk-adjusted capitalization and a diversified product portfolio.