AM Best Confirms Financial Strength Ratings for Argo Group and Farm Family Insurance

AM Best has confirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” for subsidiaries of Argo Group in New York. Additionally, AM Best affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” for American National Property and Casualty Company and associated entities, collectively known as Farm Family Insurance Group in Lincoln, Nebraska. Similarly, the Long-Term Issuer Credit Rating of “bbb-” for Clearbrook Group Holdings, Inc. in Delaware, formerly Argo Group International Holdings, Inc., was affirmed. All these ratings hold a stable outlook.

Concurrently, AM Best decided to discontinue the Long-Term Issuer Credit Rating of “bbb-” for Argo Group US, Inc., following the redemption of preferred shares and unsecured debt. This move maintains a stable outlook at the time of withdrawal.

Argo Group's affirmed ratings reflect its robust balance sheet, marginal operating performance, neutral business profile, and effective enterprise risk management. The group's financial surplus has consistently increased over recent years, despite some historical underwriting challenges mainly linked to discontinued business lines. Recent operations have demonstrated improved performance, boosted further by a strategic merger between Farm Family Casualty Insurance Company and Argonaut Insurance Company in late 2025, enhancing surplus levels and profitability.

For Farm Family Insurance Group, the ratings reflect the strength of its balance sheet, adequate operational performance, neutral business profile, and strategic enterprise risk management. The group has strategically shifted focus from homeowners’ insurance to farm, ranch, and commercial products. This move has reduced exposure to catastrophic events, effectively managing expenses while targeting more profitable business segments. Although these efforts have slightly slowed premium growth, they aim to improve underwriting outcomes while maintaining strong capitalization.

The confirmed ratings with stable outlooks for Argo’s and Farm Family’s operational subsidiaries are available on AM Best’s website as part of their recent rating activities. AM Best is globally recognized as a credit rating agency, news publisher, and data analytics provider in the insurance industry, operating in over 100 countries. More details can be accessed through their website.