This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Upgrades Ratings Of FBL Financial Group, Inc.; Removes Ratings From Under Review

Stocks in this article: FFG

A.M. Best Co. has upgraded the issuer credit rating (ICR) to “bbb-” from “bb” and the indicative debt ratings of FBL Financial Group, Inc. (FFG) [NYSE: FFG]. These ratings have been removed from under review with positive implications and assigned a stable outlook.

Concurrently, A.M. Best has affirmed the financial strength rating of A- (Excellent) and ICR of “a-” of FFG’s life insurance subsidiary, Farm Bureau Life Insurance Company (Farm Bureau Life). The outlook for these ratings is stable. Both companies are domiciled in West Des Moines, IA. (See below for a detailed listing of the indicative debt ratings.)

The upgrading of FFG’s ICR reflects its reduced leverage position, improved liability profile and expected reduction in earnings volatility. Using the proceeds from the recent sale of EquiTrust Life Insurance Company (Equitrust) to Guggenheim Partners, FFG’s leverage was reduced by the redemption of $225 million in public and affiliated debt. The sale of Equitrust also makes the enterprise’s liability structure less interest sensitive and allows it to focus on its core Farm Bureau membership.

The affirmation of the ratings of Farm Bureau Life acknowledges its continued strong capitalization, favorable market niche and improved profitability despite increased realized capital losses.

Offsetting rating factors include Farm Bureau Life’s high portion of investments in structured securities relative to statutory capital and surplus, its increasing exposure to interest-sensitive products in the current low interest rate environment and its increasing share of annuity sales growth as part of the company’s product mix.

Factors that may lead to positive rating actions include successful execution of FFG’s business plan focused on growth within the Farm Bureau market, maintenance of a favorable mix of whole life and interest-sensitive products and sustained positive earnings trends without sizable investment losses. Factors that may result in negative rating actions include a pattern of weakened earnings and coverage, a significant decline in capitalization and an increasing proportion of interest-sensitive reserves relative to total reserves.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs