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

Posted on April 1, 2024

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

By WMBD-TV

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].

Blogs

Labor Day – Expanding voting rights for all

By Mike Matejka Because of COVID, there is no Labor Day Parade this year. It’s always a great event for our everyday workers to march proudly down the street and enjoys the festive crowd. If there had been a parade, this year’s Labor Day theme was to be “150 years of struggle: your right to vote.” …

Is federal mobilization the answer?

By Mike Matejka As President Donald Trump threatens to send federal marshals into Chicago, over the objections of Illinois Governor J.B. Pritzker, recall another Illinois Governor who protested the incursion of armed federal personnel into the city. Those federal troops, rather than calming, escalated the situation, leading to deaths and violence. Illinois poet Vachel Lindsay…

In these troubled times, to my fellow white Americans

By Mike Matejka Our nation is at a unique watershed in human relations. African-Americans have been killed too many times in the past before George Floyd, but the response to this man’s death is international and all-encompassing. I was a grade-schooler during the Civil Rights 1960s. I watched Birmingham demonstrators hosed and the Selma – Montgomery…

Workers’ Memorial Day – Remember those whose job took their life

Looking around our community, when we say employer, most will respond to State Farm, Country, or Illinois State University. We too often forget those who are building our roads, serving our food, or our public employees. COVID-19 has made us more aware of the risk. Going to work every day for some people means…