[October 21, 2026]

Best's Market Segment Report: US Property/Casualty Farm Bureau Insurers Posted First Underwriting Gain Since 2021; Life/Annuity Counterparts' Results Remain Steady

U.S. farm bureau insurers saw positive momentum in 2025, as the property/casualty side reclaimed underwriting profitability, ending four consecutive years of underwriting losses, according to a new AM Best report. At the same time, their life/annuity counterparts, reported a growth in net premiums written in 2025 that bested the overall life/annuity industry's growth - a first since 2016.

Farm bureau insurers are typically member-owned organizations with a state-level focus that specialize in providing farm and agricultural coverage while also providing personal lines products (e.g., auto, home and life). The Best's Market Segment Report, titled, "US Farm Bureau Insurers Reverse Direction: P/C Profitable; L/A Premiums Up Slightly," notes that momentum following the strong 2025 results has continued into the first half of 2026, as property/casualty farm bureaus recorded nearly $1 billion in underwriting gains in the first six months of 2026, on pace with the $2.9 billion in underwriting income posted for 2025. Prior to 2025, property/casualty farm bureaus had last recorded a full-year underwriting gain in 2020.

"Due to the single-state footprint of most farm bureaus, the impact of severe weather was felt more heavily by property/casualty carriers compared with carriers with a broader spread of risk," said Brinda Modi-Shah, senior financial analyst, AM Best. "However, due to the combined impact of rate strengthening, continued softening in reinsurance pricing and less severe weather, underwriting performance began to improve in the second half of 2025, and this has carrie over into 2026."

On the life/annuity side, favorable operating results have led to consistent capital and surplus growth to $8.5 billion in 2025 from $5.3 billion in 2015. Surplus growth has continued in 2026 so far. Life/annuity farm bureaus also have seen a steady increase in investment yield, although the report notes that they consistently lag the overall life/annuity industry.

"Life/annuity farm bureaus' lower investment yield is attributable to the segment's more conservative investment portfolios than for the overall industry," said Christopher Lewis, senior financial analyst. AM Best. "For these carriers, this has resulted in greater spread compression challenges; however, the spread compression affects a smaller share of total business, with higher crediting guarantees, given the farm bureau population's more-limited exposure to annuities."

Among the report's other highlights:

• Although annual premium growth among property/casualty farm bureaus slowed in 2025, the segment posted significant growth in the preceding two years as carriers raced to bridge the gap between rates and increasing loss costs with rate-adequacy initiatives.
• In the life/annuity space, ordinary life premium accounted for 78% of farm bureau insurers' business mix in 2025, up from 68% in 2016. This shift has run counter to the overall industry, where business profiles have tilted toward annuities.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369861.

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 © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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