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A.M. Best Revises Outlook to Positive for Farmers Union Mutual Insurance Company

The positive outlook reflects Farmers Union's solid operating earnings and strong risk-adjusted capitalization. The ratings also recognize Farmers Union's prudent risk management strategies, long-term operating profitability and local market expertise. These positive rating factors are reflective of management's underwriting expertise, conservative investment strategy and catastrophe management initiatives.

Partially offsetting these positive rating factors are Farmers Union's property concentration in Montana. Although Montana is a large and geographically diverse state, a single-state geographic concentration exposes earnings to catastrophic losses as well as market and regulatory concerns. However, considerable catastrophe reinsurance is maintained to insulate surplus and earnings.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Company
Analysts:
Frederick DeLeon, 908-439-2200, ext. 5175
frederick.deleon@ambest.com
or
Gary Davis, 908-439-2200, ext. 5665
gary.davis@ambest.com
or
Public Relations:
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com