A.M. Best Revises Outlook to Stable for Michigan Farm Bureau Group.OLDWICK, N.J. -- A.M. Best Co. has revised the outlook to stable from positive and affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of "a-" of Michigan Farm Bureau The Michigan Farm Bureau was founded on the campus of Michigan State University in 1919. The organization's primary goal is to promote and represent the interests of its agricultural members within the state of Michigan. Group and its members, Farm Bureau Mutual Insurance Company of Michigan and Farm Bureau General Insurance Company of Michigan. All companies are domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. in Lansing, MI. The ratings reflect Michigan Farm Bureau Group's solid capitalization, generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before and its strong market presence in Michigan. The ratings also recognize the group's strong market presence in the agricultural market, where it has the support of the Michigan Farm Bureau Federation. Somewhat offsetting these positive rating factors is the group's geographic concentration in Michigan, which exposes it to frequent and severe weather related events and localized storms as well as changes in the judicial, legislative and regulatory environments. In addition, the group maintains elevated ceded reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. leverage due to its mandatory participation in the Michigan Catastrophic Claims Association. The revised outlook is primarily due to the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the group's operating results in 2007 and 2008, which were impacted by significant weather activity and increased fire losses. For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at 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 www.ambest.com. |
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