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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Downgrades Credit Ratings of Indiana Farmers Insurance Group’s Members

AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings to “a-” (Excellent) from “a” (Excellent) of Indiana Farmers Mutual Insurance Company and Indiana Farmers Indemnity Insurance Company. These companies are collectively referred to as Indiana Farmers Insurance Group (Indiana Farmers) and are domiciled in Indianapolis, IN. The outlook of these Credit Ratings (ratings) has been revised to stable from negative.

The ratings reflect Indiana Farmers’ balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating downgrades reflect a change in the group’s operating performance assessment due to three consecutive years of deterioration in underwriting performance as a result of significant weather-related losses. As a result, the group has now posted a net loss in three consecutive years, driving total return-on-revenue and total return-on-equity ratios negative in the respective three years with combined and operating ratios above breakeven in each of these years as well. As a result, each respective metric now compares unfavorably with composite averages on both a five- and 10-year average basis.

The stable outlooks reflect Indiana Farmers’ balance sheet assessment of very strong, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), consistently favorable reserve development and low common stock leverage. In addition, the group has implemented a slew of underwriting actions and rate activity to help combat the decline in results. Accordingly, it is anticipated that operating metrics will stabilize and remain well-aligned with the marginal assessment.

AM Best assesses Indiana Farmers’ business profile as neutral due to its market position and diversity of products offered in its primary state of Indiana. AM Best assesses Indiana Farmers’ ERM as appropriate supported by a developed risk framework and formalized risk appetite and tolerance statements.

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 © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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