Pekin Insurance Receives “AM Best” Financial Strength Rating
By Pekin Insurance · Oct 13, 2023 ·1 min read
Pekin Insurance® Group and our intercompany pool members, the Farmers Automobile Insurance Association, its wholly owned subsidiary, Pekin Insurance Company, and Pekin Select Insurance Company (a wholly owned subsidiary of Pekin Insurance Company), have recently received news of its AM Best rating. AM Best, a global credit rating agency specializing in the insurance industry, has given Pekin Insurance a rating of “A-“ (Excellent) with a negative outlook.
The rating reflects the agency's assessment of the company's financial strength and ability to meet its obligations to policyholders. AM Best considers various factors, including underwriting performance, risk management, and capitalization, when determining ratings and outlooks.
According to Dan Connell, Chairman of the Board, President, and Chief Executive Officer of Pekin Insurance, “Pekin Insurance remains committed to its policyholders and maintaining its position as a reliable insurance provider. The company has a long-standing history of serving its customers and will continue to do so with the utmost dedication and professionalism.”
Pekin Insurance recognizes its vulnerability to severe weather events due to its concentration of property risk exposures. As such, proactive and aggressive underwriting actions were taken prior to the AM Best rating.
Strategically, the company will focus on Commercial and Life products while reducing and maintaining a smaller Personal Lines sector of business. Geographic expansion will also lessen exposure to Midwest convective storms. The company expanded into the state of Utah last year and has plans to move into several more states within the next few years. Pekin Insurance is confident that the recent underwriting actions, combined with our geographic expansion will favorably impact our future AM Best rating, returning the company to a stable outlook.
Pekin Insurance understands the importance of transparency and will continue to keep its stakeholders informed about any developments regarding its financial standing. The company remains committed to providing exceptional service and coverage to its customers, ensuring their peace of mind during uncertain times.
Pekin Life Insurance Company (PLIC):
AM Best also affirmed the FSR of “A-” (Excellent) for Pekin Life Insurance Company with a negative outlook. The ratings of PLIC reflect its:
- A highly diverse investment portfolio that is of good credit quality
- Strong risk-adjusted capitalization
- Diversified product portfolio
The FSRs are published in AM Best’s Insurance Reports. They represent their independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.