Buckeye Farm News
That grade, or rating, is a key measure of financial strength for insurers and comes from the leading independent rating authority of U.S. insurers, A.M. Best Co.
A.M. Best has again awarded an A+ rating to Farm Bureau’s endorsed insurer, Nationwide, and its farm insurance company, Nationwide Agribusiness Insurance. For each of the past 75 years, dating back to when Nationwide was known as Farm Bureau Mutual, Best has recognized the company with at least an A rating in each of its business lines.
Nationwide earned its A+ rating in part because of its diversified sources of earnings and cash flows, strong balance sheet and a long history of maintaining a high quality investment portfolio governed by a sound and disciplined investment policy. With more than $142 billion in assets as of March 31, Nationwide is one of the largest providers of financial services and property and casualty insurance in the United States and is appropriately capitalized to serve customers’ needs.What’s it to me?
Nationwide’s A+ rating indicates its ability to keep its financial promises in the long run. That’s especially important to customers of Nationwide, who are the owners of the mutual company. The A+ rating also is an indication that the company takes actions to serve the customers’ best interests, which include:
- Establishing proper “loss reserves” for paying claims – Those reserves create stability and allow the company to maintain unwavering financial strength.
- Adequately evaluating and pricing risks – Under-pricing risks can be devastating if your buildings or other property are under-insured. Suffer a loss and higher building costs could come out of your pocket. Nationwide Agribusiness’ “farm certified agents”, underwriters and loss control experts specialize in evaluating farm properties and understand the risk exposures facing your operations.
- Leveraging partnerships with quality reinsurance carriers that share risks exposures with insurance companies –
Nationwide Agribusiness recognizes the need to insure a mix of businesses with varying types of risks to maintain capital strength. That way, the company attracts quality reinsurers as partners to respond appropriately when losses occur on the farm.To learn more about Nationwide’s financial strength ratings, farm insurance or discounts for Farm Bureau members on many coverages, contact a nearby Nationwide agent or find one at www.nationwide.com/ofbf.