AM Best Comments on Credit Ratings of Farmers New World Life Insurance Company Following Reinsurance Agreement Announcement
AM Best has commented that the Credit Ratings (ratings) of Farmers New World Life Insurance Company (FNWL) (Bellevue, WA) remain unchanged following the announcement that the company has entered into an agreement with Resolution Life Group to reinsure the in-force individual life insurance book of business. The reinsurance transaction is expected to close in the second half of 2023.
AM Best anticipates that FNWL will continue to maintain supportive risk-adjusted capitalization and overall balance sheet strength, which is assessed at the very strong level. AM Best does not expect the reinsurance transaction to materially impact FNWL's adequate operating performance, neutral business profile and appropriate enterprise risk management. Following the close of the transaction, AM Best will continue to discuss the transaction's progress with FNWL management and assess its impact on operations.
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