AM Best has placed under review with positive implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Louisiana Farm Bureau Mutual Insurance Company (Louisiana Farm Bureau) (Baton Rouge, LA).

The Credit Ratings (ratings) reflect Louisiana Farm Bureau’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile, and appropriate enterprise risk management.

This action follows the announcement that Louisiana Farm Bureau and Southern Farm Bureau Casualty Insurance Company (Southern Farm Bureau) have approved a sponsored demutualization transaction. In this transaction, Louisiana Farm Bureau will convert into a stock company and Southern Farm Bureau will purchase the entire stock of the newly formed company, at which point Louisiana Farm Bureau will become a wholly owned subsidiary of Southern Farm Bureau. AM Best expects that the transaction will be secured via a 100% reinsurance quota share agreement, resulting in Louisiana Farm Bureau ultimately becoming a member under the Southern Farm Bureau Casualty Group.

The under review with positive implications status reflects the expected benefit of this pending transaction for Louisiana Farm Bureau. Southern Farm Bureau is a leading personal lines writer in the Southeastern United States with sufficient financial flexibility and a history of supporting Louisiana Farm Bureau operationally, as well as by providing supplementary reinsurance protection and issuing a surplus debenture. If Louisiana Farm Bureau becomes a subsidiary of Southern Farm Bureau, it is expected to benefit from being a part of a larger scale organization. Further, through sharing services and consolidating operational functions, Louisiana Farm Bureau is expected to realize cost reductions.

The transaction is currently pending regulatory approvals and customary closing conditions and is expected to close sometime in second-quarter 2026. The ratings will remain under review with positive implications until the transaction is successfully executed, as well as until AM Best can accurately evaluate the reinsurance contract between Southern Farm Bureau and Louisiana Farm Bureau.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

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