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A.M. Best Affirms Financial Strength Ratings

The Farmers Automobile Insurance Association and Pekin Insurance Company Ratings
A.M. Best has affirmed the Financial Strength Rating (FSR) of “A” (Excellent) of Pekin Insurance Group and our two intercompany pool members, The Farmers Automobile Insurance Association and its wholly owned subsidiary, Pekin Insurance Company. The outlook for the FSR continues to be stable. Financial Strength Ratings are published in A.M. Best’s Insurance Reports and represent their independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The affirmed rating reflects Pekin Insurance Group’s solid risk-adjusted capitalization, conservative investment risk profile, consistently favorable loss reserve trends, and well-established agency relationships. Improved technology reflected by our use of By-Peril based rating in the Homeowners line was noted as a competitive advantage.

At the same time, A.M. Best has affirmed our Issuer Credit Rating (ICR) of “a.” The outlook for the ICR continues to be stable. Issuer Credit Ratings are not published in A.M. Best’s Insurance Reports, but are posted on A.M. Best’s website and Business Wire. An ICR is assigned to insurance companies, banks, hospitals, holding companies, or other legal entities authorized to issue financial obligations and represents A.M. Best’s independent opinion of an entity’s ability to meet its ongoing senior financial obligations. Although the Pekin Insurance Group has never issued any senior financial obligations, the ICR is utilized by A.M. Best to provide additional granularity in the overall rating process.

Pekin Life Insurance Company Ratings
A.M. Best has also affirmed the FSR of “A-” (Excellent) and the ICR of “a-” for Pekin Life Insurance Company. The outlook for both ratings remains stable. The ratings of Pekin Life Insurance Company reflect many positive rating factors including its integral role and positive contribution to the Pekin Insurance Group, high-quality investment portfolio, diversified product portfolio, and favorable level of risk-adjusted capitalization.Facebooktwittergoogle_plusredditpinterestlinkedinmail

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