AM Best Affirms Ratings for Argo Group and Farm Family Insurance

AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) for Argo Group, based in New York, NY. Similarly, AM Best confirmed the FSR of A (Excellent) and Long-Term ICRs of “a” (Excellent) for American National Property and Casualty Company and its affiliates, known collectively as the Farm Family Insurance Group, headquartered in Lincoln, NE. The ratings for Clearbrook Group Holdings, Inc. also received affirmation, maintaining a Long-Term ICR of “bbb-” (Good), all carrying a stable outlook. Notably, the Long-Term ICR of “bbb-” (Good) for Argo Group US, Inc. was rescinded following the redemption of its preferred shares and senior unsecured debt, with a stable outlook.

Argo's ratings underscore its robust balance sheet, deemed very strong by AM Best, alongside adequate operational performance, a neutral market position, and effective enterprise risk management. Over recent years, the group has shown consistent surplus growth. Despite historic underwriting challenges due to exposure adjustments in exited business lines, ongoing operations have displayed improved results. Strategic consolidation efforts, including the integration of Farm Family Casualty Insurance Company into Argonaut Insurance Company, have bolstered surplus levels and profitability.

For Farm Family, the ratings capture its solid balance sheet, satisfactory performance, neutral business posture, and adept risk management. The group's strategic decision to exit the homeowners' insurance market in favor of farm, ranch, and commercial products is anticipated to yield better underwriting outcomes, though it initially curtails premium growth. Maintaining underwriting discipline, Farm Family has reduced catastrophe exposure and sustains a strong capital position, successfully implementing its strategic objectives.

The affirmation of the Long-Term ICR of “a” for Farm Family Insurance Group and A- for Argo’s operating entities suggests stable future prospects. For detailed insights into these ratings, interested parties are advised to consult AM Best’s Recent Rating Activity webpage. Additionally, AM Best encourages engagement with Best's Credit Ratings, Performance Assessments, and Preliminary Credit Assessments through guides available on their website.

AM Best stands as a leading credit rating agency, publisher, and analytics provider within the insurance industry. Headquartered in the United States, the organization extends its international operations across several global hubs, including London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.