NC Farm Bureau Insurance, headquartered in Raleigh, NC, will have its credit rating downgraded by Standard & Poor’s.
Standard & Poor’s announced it would reduce NC Farm Bureau’s rating from “A” to “BBB”.
The rating agency stated the downgrade was due, in large part, to a decline in NC Farm Bureau’s operational profitability as well as the company’s exposure to losses from hurricanes, hailstorms, tornados and other such events.
2011 was not a good year for NC Farm Bureau. The company posted an underwriting loss of $303 million.