AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Farm Bureau Property & Casualty Insurance Company and Western Agricultural Insurance Company, both domiciled in West Des Moines, IA, and collectively known as Farm Bureau Property & Casualty Group.

The Credit Ratings (ratings) reflect Farm Bureau Property & Casualty Group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the rating outlooks to stable from negative reflects improvement in Farm Bureau Property & Casualty Group’s operating performance metrics that have been sustained over more recent periods. Results began to trend more favorably beginning in the second half of 2024, following years 2022 and 2023, which were affected adversely by inflationary trends, severe weather-related losses and unfavorable loss reserve development. Improvement has been driven largely by a stronger emphasis on rate adequacy and numerous underwriting and strategy adjustments, including but not limited to deductible changes, stricter insurance-to-value and exposure management techniques, and loss mitigation efforts. Notably, the combined ratio through year-end 2025 was in the sub-80s with sizable underwriting profits achieved, a trend of which has continued through results as of June 30, 2026. AM Best expects that over the near term, results will continue to stabilize and remain aligned with the adequate operating performance assessment.

Farm Bureau Property & Casualty Group’s balance sheet strength assessment is strongest, reflective of its strongest overall level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as policyholders’ surplus growth in a majority of the past 10 years, a conservative and high-quality investment portfolio, various sources of financial flexibility, and loss reserving trends that have improved from recent years. AM Best assesses the business profile as neutral, given the group’s dominant market position as the largest farmowners writer in the nation with over $2 billion in policyholders’ surplus. Still, the group’s business concentration in only eight primary states creates susceptibility to potentially severe and frequent weather events, as well as regulatory, market, and event risks in its operating territory. Lastly, AM Best assesses the group’s ERM as appropriate, supported by a well-developed framework that aligns well with the risk profile and continues to mature and evolve with changing market conditions.

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, Best’s Performance Assessments, Best’s Preliminary Credit Assessments 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. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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