AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of the members of Farmers Insurance Group (Farmers). The outlook of the FSR is stable. At the same time, AM Best has revised the outlook to positive from stable for the Long-Term Issue Credit Ratings (Long-Term IR) and affirmed the Long-Term IRs of “bbb+” (Good) on the outstanding surplus notes of Farmers Insurance Exchange (Woodland Hills, CA) and Farmers Exchange Capital (Wilmington, DE). (Please see below for a detailed listing of the companies and Credit Ratings [ratings].)

The ratings reflect Farmers’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

The revision of the Long-Term ICR outlooks to positive from stable recognizes the group’s operating performance, which has demonstrated a trend of underwriting profitability, complemented by consistent investment income in recent periods. The recent operating success has led to significant organic surplus growth and improved the group’s relative standing among its peers, which can be attributed to consistent, targeted pricing actions, continued efforts around exposure management and expense discipline.

The overall assessment of Farmers’ balance sheet strength reflects the group’s strongest level risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), organic surplus growth, conservative investment portfolio and comprehensive reinsurance program. The ratings also consider Farmers’ adequate operating performance, supported by a considerable improvement in operating results through 2024 and 2025. The improved results can be attributed to targeted pricing actions, refined risk-mitigation strategies, revised product offerings and further strengthening of underwriting oversight.

Partially offsetting these strengths are the group’s elevated exposure to catastrophe losses and its reliance on approximately $2 billion in surplus notes.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed, with the Long-Term ICR outlooks revised to positive from stable, while the outlook of the FSR is stable, for the following members of Farmers Insurance Group:

  • 21st Century Casualty Company
  • 21st Century Centennial Insurance Company
  • American Federation Insurance Company
  • 21st Century Insurance Company
  • 21st Century North America Insurance Company
  • 21st Century Pinnacle Insurance Company
  • 21st Century Premier Insurance Company
  • American Pacific Insurance Company, Inc.
  • Bristol West Casualty Insurance Company
  • Bristol West Insurance Company
  • Bristol West Preferred Insurance Company
  • Civic Property and Casualty Company
  • Coast National Insurance Company
  • Exact Property and Casualty Company
  • Farmers Insurance Company, Inc.
  • Farmers Insurance Company of Arizona
  • Farmers Insurance Company of Idaho
  • Farmers Insurance Company of Oregon
  • Farmers Insurance Company of Washington
  • Farmers Insurance Exchange
  • Farmers Insurance Hawaii, Inc.
  • Farmers Insurance of Columbus, Inc.
  • Farmers New Century Insurance Company
  • Farmers Specialty Insurance Company
  • Farmers Texas County Mutual Insurance Company
  • Farmers Lloyds Insurance Company of Texas
  • Fire Insurance Exchange
  • Foremost County Mutual Insurance Company
  • Foremost Insurance Company Grand Rapids, Michigan
  • Foremost Lloyds of Texas
  • Foremost Property and Casualty Insurance Company
  • Foremost Signature Insurance Company
  • Illinois Farmers Insurance Company
  • Mid-Century Insurance Company
  • Mid-Century Insurance Company of Texas
  • Neighborhood Spirit Property and Casualty Company
  • Security National Insurance Company
  • Texas Farmers Insurance Company
  • Toggle Insurance Company
  • Truck Insurance Exchange
  • Economy Fire & Casualty Company
  • Economy Preferred Insurance Company
  • Economy Premier Assurance Company
  • Farmers Property and Casualty Insurance Company
  • Farmers Casualty Insurance Company
  • Farmers Direct Property and Casualty Insurance Company
  • Farmers Group Property and Casualty Insurance Company

The following Long-Term IRs have been affirmed with revised outlooks to positive from stable:

Farmers Insurance Exchange—

— “bbb+” (Good) on USD 400 million 4.747% surplus notes, due 2057
— “bbb+” (Good) on USD 300 million 7.00% surplus notes, due 2064

Farmers Exchange Capital—

— “bbb+” (Good) on USD 500 million 7.05% surplus notes, due 2028 (USD 375.0 million outstanding)
— “bbb+” (Good) on USD 150 million 7.2% surplus notes, due 2048 (USD 138.5 million outstanding)
— “bbb+” (Good) on USD 335 million 6.151% surplus notes, due 2053
— “bbb+” (Good) on USD 500 million 5.454% surplus notes, due 2054

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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