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Kentucky Farm Bureau Mutual Insurance Co. again received A.M. Best Co.’s superior rating for its financial strength.
A.M. Best graded the insurance company at A+ for the fifth consecutive year for 2008 performance, despite declines in investment income because of weak economic conditions and $140 million in underwriting losses resulting from record payouts of $227.4 million to policyholders from damages during a year of severe winter, summer and fall storms.
Kentucky Farm Bureau ended 2008 with more than 1.2 million policies in force and $1.6 billion in assets.
Kentucky Farm Bureau maintained it’s A+ rating, A.M. Best said in its grading report, because of its “superior capital position” following three years of double-digit surplus growth.
A.M. Best said the continued superior rating reflects low underwriting leverage, solid operating performance, moderate investment risk and consistently favorable loss reserve development.
Brad Smith, the new executive vice president and chief executive officer of Kentucky Farm Bureau’s insurance operations, said the 2008 loss was actually a gain because it reinforced the company’s message of commitment to serving members during difficult times.
He also said the A+ rating is a “compliment for the conservative approach to investments and steadfast pursuit of enhancing the surplus in recent years.”
A.M. Best is the oldest and largest worldwide insurance rating and information agency.