AM Best Affirms Credit Ratings of Farmers New World Life Insurance Company and Farmers Reinsurance Company

OCTOBER 01, 2025 09:38 AM (EDT)

AM Best Affirms Credit Ratings of Farmers New World Life Insurance Company and Farmers Reinsurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 01, 2025 09:38 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a+" (Excellent) of Farmers New World Life Insurance Company (FNWL) (Bellevue, WA). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of "a" (Excellent) of Farmers Reinsurance Company (Farmers Re) (Woodland Hills, CA). The outlook of these Credit Ratings (ratings) is stable.

The ratings of FNWL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also recognize the continued strategic value that FNWL provides to its ultimate parent, Zurich Insurance Group Ltd. (Zurich).

FNWL's ratings are supported by its risk-adjusted capitalization being maintained at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The company continues to implement its reinsurance agreement with Resolution Life Group Holdings Ltd. covering the in-force book and positioning the organization for a strategic realignment. FNWL will focus on launching a simplified product portfolio optimized for efficient distribution, delivering shorter cycle times.

The ratings of Farmers Re reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also reflect the company's strategic importance to Zurich.

Farmers Re's ratings are supported by its risk-adjusted capitalization being maintained at the very strong level, as measured by BCAR, and its history of providing reinsurance support to the Farmers Insurance Group. The company's business profile is considered limited given the entity's sole purpose of assuming business from the Farmers Insurance Group. Farmers Re benefits from the Zurich organization's shared ERM framework, which supports an ERM assessment of appropriate.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activityweb page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings (BCR), Best's Performance Assessments (PA), Best's Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.