AM Best has revised the outlook for Florida Farm Bureau Group members to positive from stable and affirmed a financial strength rating of B++ (Good) and a long-term issuer credit rating of ‘bbb+’ (Good).
Florida Farm Bureau Casualty Insurance Company and its fully reinsurance subsidiary Florida Farm Bureau General Insurance Company together form the Florida Farm Bureau Group.
In November 2023, AM Best placed the group’s ratings under review for negative implications following a significant decline in key balance sheet strength indicators.
The revised ratings reflect Florida Farm Bureau Group’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).
The outlook revision to positive is primarily due to improvements in its operating results, including improved rate adequacy in its core business and key underwriting actions taken by management that improved risk quality.
AM Best noted, “In response to several years of inconsistent underwriting performance, Florida Farm Bureau Group implemented significant rate increases, deductible adjustments, non-renewal of certain business classes, stricter underwriting guidelines and additional reinsurance coverage, all in an effort to improve profitability. These actions, coupled with significant regulatory and legislative changes in Florida’s real estate market, resulted in favorable trends starting in 2024, when the group recorded its first underwriting gains in several years. 2025 Further benefiting from significant regulatory and legislative changes in Florida’s real estate market, the trend continued with combined ratios below $80 and underwriting profits approaching $60 million, driven by a lack of hurricane activity in Florida and various reforms, which contributed significantly to policyholder surplus growth. “
Overall, operating performance trends remain positive for the year to date in 2026, and AM Best expects the group to remain profitable in the near term despite facing natural disasters, ultimately leading to key operating performance indicators moving closer to adequate assessment levels.
The rating also reflects Florida Farm Bureau Group’s strongest risk-adjusted capital levels, as measured by Best’s capital adequacy ratio, as well as improving underwriting and reserve leverage, as well as improving loss reserve development trends, all of which support its assessment of strong balance sheet strength.
AM Best continued: “Florida Farm Bureau Group’s business profile is limited, primarily due to its single-state geographic concentration and product concentration as the primary personal property underwriter in Florida. However, the business profile still benefits from its exclusive agent business model. ERM capabilities are consistent with the group’s risk profile and maintains a comprehensive reinsurance program, which reduces tail risk and reduces the net possible maximum loss in a hurricane event to 10% of policyholder surplus. below. Finally, Florida Farm Bureau Group continues to benefit from implicit and explicit support from its parent company, Southern Farm Bureau Casualty Insurance Company.”
