Moody’s revises Farmers Insurance view

Moody's Investors Service said it affirmed the Baa2 (hyb) surplus note rating of Farmers Insurance Exchange.

The outlook for Farmers Insurance Group was changed to negative from stable reflecting high operational and financial leverage.

“The negative outlook reflects Farmers persistently high gross underwriting and financial leverage relative to peers,” the agency said in a news release.

“While Farmers has made good progress toward improving its personal auto underwriting results by raising rates and implementing underwriting actions, surplus has remained relatively flat and earnings modest.”

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