AM Best has upgraded its outlook for several Farm Bureau insurance companies, reflecting improved stability and financial strength. Southern Farm Bureau Casualty Insurance Company, Colorado Farm Bureau Insurance Company, Louisiana Farm Bureau Casualty Insurance Company, and Mississippi Farm Bureau Casualty Insurance Company all saw their outlooks change from negative to stable while maintaining their strong ratings.
In a notable move, Arkansas Farm Bureau Insurance Company received an upgrade in ratings, moving from B (Fair) to A (Excellent) for Financial Strength and from “bb” (Fair) to “a” (Excellent) for its Long-Term Issuer Credit Ratings. This change followed the company’s recent restructuring, which occurred on August 1, 2025. On that day, the formerly known Farm Bureau Mutual Insurance Company of Arkansas converted to a stock company and was renamed Arkansas Farm Bureau. Southern Farm Bureau Casualty Insurance Company then acquired all shares, making Arkansas Farm Bureau a wholly owned subsidiary.
A key part of this restructuring was a 100% reinsurance quota share agreement with Southern Farm Bureau Casualty Insurance Company. Under this deal, Arkansas Farm Bureau cedes all premiums, losses, and expenses to Southern Casualty. This arrangement is expected to bring financial benefits and operational cost savings for Arkansas Farm Bureau. For Southern Farm Bureau, it aligns better with their overall strategy and connects the company to a larger base of policyholders’ surplus.
AM Best credits Southern Farm Bureau’s very strong balance sheet and solid risk management for maintaining these ratings. The company’s operating performance has also shown positive signs. Although it faced challenges in previous years with tough auto insurance market conditions and weather-related losses, Southern Farm Bureau responded with significant rate increases and stricter underwriting rules. These actions led to an underwriting profit and a combined ratio of 95.9% in 2024 — a big improvement over the prior year. This positive trend has continued into 2025, even with ongoing weather-related losses.
Overall, the changes show a more stable and financially solid position for these Farm Bureau insurers. The developments should provide reassurance to policyholders and stakeholders that the companies are on a steady path forward.