The world of insurance is getting turned on its collective ear. Markets are unbelievably volatile and companies are pulling out of areas, non-renewing customers and increasing rates at an all-time high. Buckle up!
AM Best press release
An insurer has to be financially healthy to be able to pay out claims. As an independent credit rating agency, A.M. Best translates balance sheets and other data into letter grades that can be understood by consumers, investors and others in the insurance industry.
Fair (B, B-)
A "fair" rating is assigned to companies that have a fair ability to meet their continuing insurance obligations. The companies' financial strength is vulnerable to unfavorable changes in economic conditions and underwriting.
AM Best press release
Quote:
The rating downgrades reflect continued deterioration in State Farm General's policyholder surplus at Dec. 31, 2023, which resulted in a corresponding decline in overall risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and weakening balance sheet metrics. A contributing factor to this decline was sharp increases in claim severity affecting the company's umbrella and commercial multi-peril lines of business.
An insurer has to be financially healthy to be able to pay out claims. As an independent credit rating agency, A.M. Best translates balance sheets and other data into letter grades that can be understood by consumers, investors and others in the insurance industry.
Fair (B, B-)
A "fair" rating is assigned to companies that have a fair ability to meet their continuing insurance obligations. The companies' financial strength is vulnerable to unfavorable changes in economic conditions and underwriting.