OLDWICK, N.J. – (BUSINESS WIRE) – A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Farmers New World Life Insurance Company (FNWL) (Mercer Island, WA). The outlook for both ratings is stable.
FNWL is owned by Farmers Group, Inc. (Farmers), a leading provider of personal lines insurance, whose ultimate parent is Zurich Financial Services Ltd.
The ratings reflect FNWL’s profitable statutory operating results, improved capital levels in 2009 and access to Farmers multi-line agency force for cross-selling opportunities.
Offsetting rating factors include FNWL’s significant investment losses, exposure to interest sensitive collateralized mortgage-backed securities, and an annuity business with little or no surrender charge protection. To mitigate investment exposure, the company implemented a de-risking program in 2009 that included the sale of real estate investment trusts and disposing of other riskier assets to improve portfolio quality.
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The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at http://www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit http://www.ambest.com.
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