Ky. Insurance Co. Receives Superior Rating

The Kentucky Farm Bureau Mutual Insurance Company was awarded an A+ by A.M. Best  for the fifth consecutive year for its 2008 performance.  It received this grade despite declines in investment income because of weak economic conditions and $140 million in underwriting losses due to the damages from a year of severe summer, fall and winter storms.

Kentucky Farm Bureau maintained its A+ rating, A.M. Best said in its grading report, because of its “superior capital position” following three years of double-digit surplus growth.

A.M. Best said the continued superior rating reflects low underwriting leverage, solid operating performance, moderate investment risk and consistently favorable loss reserve development.

Brad Smith, the new executive vice president and chief executive officer of Kentucky Farm Bureau’s insurance operations, said the 2008 loss was actually a gain because it reinforced the company’s message of commitment to serving members during difficult times.

He also said the A+ rating is a “compliment for the conservative approach to investments and steadfast pursuit of enhancing the surplus in recent years.”

A.M. Best is the oldest and largest worldwide insurance rating and information agency.