Rating agency downgrades State Farm General Insurance Co.’s credit rating

State Farm’s headquarters are located in Bloomington. (Photo courtesy: WJBC/File)


BLOOMINGTON – The rating agency AM Best has downgraded the credit rating of State Farm General Insurance Company on Thursday.

According to AM Best, State Farm General Insurance Financial Strength Rating has been downgraded from A (Excellent) to B (Fair).

State Farm General Insurance Company is a subsidiary of the larger company which is known as State Farm, and is based in Bloomington.

AM Best has also downgraded State Farm General Insurance Long-Term Issuer Credit Rating (Long-Term ICR) from “a” (Excellent) to bb+ (Fair).

The rating downgrade is a result of the deterioration of State Farm’s General Insurance policyholder surplus and a sharp increase in claims severity, which affects the “company’s umbrella and commercial multi-peril lines of business,” according to AM Best.

AM Best also revised its FSR from negative to stable, and its Long-Term ICR outlook is negative.

We have reached out to State Farm for a statement and have not received a response yet.

WMBD-TV can be reached at [email protected].


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