OLDWICK, N.J.–(BUSINESS WIRE)–AM Greatest has affirmed the Monetary Power Score of A (Glorious) and the Lengthy-Time period Issuer Credit score Score (Lengthy-Time period ICR) of “a+” of Farm Bureau Life Insurance coverage Firm (FBL). Concurrently, AM Greatest has affirmed the Lengthy-Time period ICR of “bbb+” of FBL Monetary Group Inc. [NYSE: FFG], the holding firm of FBL. The outlook of those Credit score Rankings (scores) is secure. Each corporations are domiciled in West Des Moines, IA.
The scores mirror FBL’s steadiness sheet energy, which AM Greatest categorizes as very sturdy, in addition to its sturdy working efficiency, impartial enterprise profile and acceptable enterprise threat administration.
Threat-adjusted capital is assessed on the strongest degree and is supported by good liquidity metrics. FBL has entry to a number of liquidity backstops, in addition to working and monetary leverage ratios which might be well-below tolerance thresholds set by AM Greatest and good curiosity protection ratios. FBL maintains an funding portfolio that’s of excellent general high quality with reasonably higher-than-average funding threat in comparison with trade benchmarks. FBL’s business mortgage loan portfolio is excessive relative to capital with a big allocation to retail, which may underperform within the present COVID-19 surroundings.
FBL’s working efficiency compares favorably with trade benchmarks on a variety of metrics and FBL advantages from cross-sell charges which might be a lot greater than trade and peer averages. Funding and mortality expertise stays favorable, though FBL, together with the trade, faces continued unfold compression, as funding yields have declined barely over the earlier 5 years. A majority of FBL’s in-force annuity and peculiar life insurance coverage enterprise is on the assured minimal crediting fee and there may be some publicity to greater ensures. Moreover, a excessive share of annuity liabilities lack give up safety fees, which exposes the corporate to disintermediation threat ought to rates of interest rise quickly.
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