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AM Best Revises Outlooks to Positive for National Farm Life Insurance Company

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb+” (Good) of National Farm Life Insurance Company (National Farm Life) (Fort Worth, TX).

These Credit Ratings (ratings) reflect National Farm Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

The positive outlooks reflect AM Best’s view and expectation that the improvements in National Farm Life’s ERM and risk-mitigation capabilities over the past few years are sustainable and could lead to a higher ERM assessment. The company’s ERM program has been formally adopted and includes a framework incorporating appropriate procedures to identify, manage and mitigate risks for effective risk management. Risks are identified and scored on matrixes and include mitigation strategies for medium to high risks. Subcommittees are used for program structure and appropriate approval lines. Documentation is updated quarterly, and the program has top-down support from the company’s Board of Directors.

National Farm Life’s balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), its conservative investment portfolio and a good credit quality of assets. The company’s adequate operating performance reflects decreasing overall earnings but low volatility in top and bottom-line results. The company’s limited business profile reflects its significant geographic concentration in Texas and limited market position.

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

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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