Pekin Insurance Receives “Excellent” Ratings From A.M. Best
Pekin Insurance is a group name adopted to designate the combined operation of The
Farmers Automobile Insurance Association, Pekin Insurance Company, PAC, Inc., and Pekin Life Insurance Company. The company recently received its 2014 ratings from A.M. Best,
a global credit rating agency with a unique focus on the insurance industry. Insurance
professionals, brokers, regulators and consumers refer to Best’s Credit Ratings as an opinion of the financial strength and creditworthiness of risk-bearing entities and investment vehicles.
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 excellent risk-adjusted capitalization, steady surplus growth, experienced management team, and solid agency relationships.
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.
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 generally positive contribution to the Pekin Insurance Group, high-quality investment portfolio, diversified product portfolio, and favorable level of risk-adjusted capitalization.