OLDWICK, N.J.–(BUSINESS WIRE)–#insurance—AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term ICRs of “aa” (Superior) of Tennessee Farmers Mutual Insurance Company and its affiliate, Tennessee Farmers Assurance Company, which are members of Tennessee Farmers Insurance Companies (TFIC). The outlook of the FSR is stable. At the same time, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICR of “aa-” (Superior) of Tennessee Farmers Life Insurance Company (TFLIC). The outlook of these Credit Ratings (ratings) is stable. All companies domiciled in Columbia, TN.
The ratings reflect TFIC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
The revision of the Long-Term ICR outlook to stable from negative reflects successful results that are favorable to peers in recent years. TFIC’s operating performance advantage is best displayed through its five- and 10-year average measures. Through year-end 2025, the group outperformed the private passenger standard auto and homeowners’ composite averages in multiple metrics including return measures, underwriting ratios and operating ratios. The group has a material underwriting expense advantage driven by the entity’s scale compared with the composite and other Farm Bureau peers. The group has managed its expenses consistently to allow for more favorable pricing and lower volatility in underwriting results.
TFIC’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which remained at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength is complemented further by low underwriting leverage ratios, favorable liquidity, consistently favorable reserve development and a low-risk investment profile.
The favorable business profile reflects TFIC’s strong market leadership position in a competitive environment, where a productive and stable distribution agency is leveraged throughout the regions of Tennessee. The group’s purpose is to serve the farmer community in Tennessee. The group collectively offers a full line of personal insurance products and services to members of the Tennessee Farm Bureau Federation. The group maintains predominant market share, agent retention levels, strong brand recognition, long-standing Farm Bureau affiliation and diversification of product line offerings across the state.
TFIC’s ERM assessment of appropriate reflects the group’s established risk management framework with stated risk tolerances, limits and controls. The ERM assessment is based on the risk management framework and culture, depth of understanding risk exposures and dedication to properly assessing risks on an ongoing basis. TFIC continues to voluntarily file an Own Risk Solvency Assessment Report (ORSA) with the Tennessee insurance department that is updated annually.
The ratings of TFLIC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.
The stable outlooks reflect AM Best’s expectation that TFLIC will maintain its balance sheet strength, operating performance and business profile assessments over the intermediate term. The company’s assessments are built upon its stable operating trends and product profile that have led to consistent and organic growth of risk-adjusted capital.
TFLIC’s balance sheet strength assessment is supported by its risk-adjusted capitalization, which remained at the strongest level at year-end 2025, as measured by BCAR. This balance sheet strength assessment is complemented further by quality of capital, favorable liquidity measures and low reinsurance dependence. Some limiting factors include the tighter spread compression between asset investment returns and crediting rates on annuities.
TFLIC’s operating performance assessment is supported by a proven track record of profitability on a pre-tax basis extending over 20 years. TFLIC’s individual life business continues to dominate its earnings profile. Life insurance face amount volume is broken down approximately 20% permanent and 80% term. Life insurance annualized premium is broken down approximately 60% permanent and 40% term.
The neutral business profile reflects TFLIC’s strong market position in a competitive environment. TFLIC markets life/annuity products to Tennessee Farm Bureau Federation members. Approximately 89% of the membership owns property/casualty policies, and approximately 33% of that group owns a life company product.
TFLIC’s ERM assessment of appropriate reflects the group’s established risk management framework, which is integrated fully with the parent company, TFIC. TFLIC considerations also are included in the company’s annual ORSA report.
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.
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