Zurich captive ratings affirmed by AM Best
AM Best has affirmed the financial strength rating (FSR) of A and the long-term issuer credit rating (long-term ICR) of “a+” of Farmers New World Life Insurance Company (FNWL).
At the same time, AM Best has affirmed the FSR of A (Excellent) and the long-term ICR of “a” of Farmers Reinsurance Company (Farmers Re). The outlook of these Credit Ratings (ratings) is stable.
The ratings of FNWL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also recognize the continued strategic value that FNWL provides to its ultimate parent, Zurich Insurance Group.
FNWL’s ratings are supported by its risk-adjusted capitalisation being maintained at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), a history of positive operating earnings, and material contributions to the overall group from new business value and operating profits. The company’s previously announced reinsurance agreement with Resolution Life Group Holdings will allow a strategy shift going forward, enabling it to focus on a simplified product portfolio that is easier to sell and has shorter cycle times.
The ratings of Farmers Re reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also reflect the company’s strategic importance to Zurich Insurance Group.
