Farmers Mutual receives rating upgrade - Beckley, Bluefield & Lewisburg News, Weather, Sports

Farmers Mutual receives rating upgrade

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FAIRMONT, WV — A.M. Best Co. has upgraded the financial strength rating to  A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from  "bbb "of Farmers Mutual Insurance Co. of Fairmont.

"Farmers Mutual achieved this historic milestone as a result of consistent profitability within our niche market, strong service standards, a loyal agency force and long term business partners," Dave Corsini, president and CEO of Farmers, said in a news release.

"As a domiciled West Virginia Mutual Insurance Company, 100 percent of our focus is on providing insurance protection backed by personal service to our clientele within our great state. Founded in 1905, our commitment remains stronger than ever," Corsini said.

The rating actions are based on Farmers' adequate level of capitalization driven primarily by its low underwriting leverage, several years of profitable operating results and a long-standing local market presence in its single state of operation. The positive rating factors are attributed to the company's focus on profitability within in its business niche and its long-term agency relationships, Corsini said.

Over the past several years, the company reported above average operating income as a result of its favorable underwriting results and a steady flow of investment income. Through periods of competitive market conditions, management has maintained its underwriting and pricing discipline. The ratings further reflect the expectation that Farmers will continue to strengthen its risk-adjusted capitalization and out-perform the operating results of the composite average, Corsini said.