AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a+” (Excellent) of Farmers New World Life (FNWL) and Farmers Reinsurance Company (Farmers Re).
FNWL and Farmers Re are both US-based captive insurers for their ultimate parent company Zurich Insurance.
AM Best assesses FNWL’s balance sheet as “very strong”. It says the company’s rating is reflective of its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings company says that FNWL’s reinsurance agreement with Resolution Life Group Holdings makes its product portfolio easier to sell and has shorter cycle times.
AM Best similarly rates Farmers Re’s balance sheet as “very strong”, as well as adequate operating performance, limited business profile and appropriate ERM. They acknowledge the company’s importance to its ultimate parent.
