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

SEPTEMBER 03, 2026 02:31 PM (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 - SEPTEMBER 03, 2026 02:31 PM (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 the company's 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), as well as its high-quality and well-diversified investment portfolio and its very strong ERM capabilities derived from Zurich's shared ERM framework.

As FNWL has now moved past its reinsurance transaction with Resolution Life Group Holdings Ltd., the focus has shifted to the company's revamped products and underwriting platform. The new platform, as well as a handful of products, were optimized for efficient distribution, and as a result, cycle times have been reduced drastically.

The ratings of Farmers Re reflect the company's 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 strongest level, as measured by BCAR, and its history of providing capital support to Farmers Insurance Group (Farmers) through reinsurance participation. The company's business profile remains limited, given that the entity's sole purpose is assuming business from Farmers. Additionally, 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 Activity web 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.