Louisiana
AM Best downgrades Louisiana Farm Bureau with negative outlook – Reinsurance News
AM Best has downgraded Louisiana Farm Bureau Mutual Insurance Company credit ratings and assigned them a negative outlook, a move that reflects the company’s deterioration of its key balance sheet strength.
Louisiana Farm Bureau Financial Strength Rating has been downgraded to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating was downgraded to “bbb” (Good) from “a-” (Excellent).
According to the agency, these ratings reflect the company’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 (ERM).
Yet, the downgrades reflect deterioration in Louisiana Farm Bureau’s key balance sheet strength and operating return metrics, which AM Best notes, “have come in the form of policyholder’s surplus erosion and declining levels of risk-adjusted capitalization.”
It continued: “In addition, operating performance has trended downward over the past few years and was adverse particularly in 2023. The volatility has stemmed predominately from much higher reinsurance costs over the past several years following catastrophe loss activity from Hurricanes Ida, Laura and Delta. Also, inflationary pressures on loss costs and convective storm activity over the past few years has contributed further to the deterioration.
“As a result, the company’s five-year average operating return metrics have fallen materially relative to the personal property industry composite. Surplus has also fallen in four out of the past five years, with the largest decline occurring in 2023.”
Louisiana Farm Bureau has been able to address the adverse trends through stricter underwriting guidelines, and sizable rate increases, which should somewhat offset the material increase in reinsurance costs, according to the agency.
“In an effort to stabilise its operating performance and balance sheet strength metrics, Louisiana Farm Bureau also continues to focus diligently on managing its coastal exposures, property inspections, and refining its underwriting standards,” AM stated.
Concluding: “However, given the severity of loss over the past several years, it remains to be seen whether these initiatives will be proven effective. As a result, there is a negative outlook for the ratings, which encompasses pressure on the company’s ERM building block assessment. If these trends continue, there could be a downward revision in the company’s ERM assessment.”
The news of Louisiana Farm Bureau credit ratings follow AM Best announcement regarding the downgrade of Farm Bureau Mutual Insurance Company of Arkansas (FBMICA) credit ratings.
According to the agency, these downgrades were driven by ongoing severe weather-related losses, which have significantly weakened FBMICA’s policyholder surplus and overall risk-adjusted capitalisation.
A state lawmaker whose district includes Iberville and nine other parishes will lead the way on the drawing of a new congressional map when the committee convenes Friday.
Sen. Caleb Kleinpeter, R-Port Allen, will chair the hearings to draw a new congressional district map. He currently serves as chairman of the U.S. Senate and Governmental Affairs Committee.
On Wednesday, Kleinpeter said he has not worked on any maps. He is letting the committee members and the members of the Senate work on this with staff.
The move will come nine days after the U.S. Supreme Court on a 6-3 vote ruled one of Louisiana’s two majority-Black U.S. House districts unconstitutional.
“We can’t base it on race anymore, so the minority party is the Democrats,” he said. “The Democrats have migrated away from the New Orléans area, so we’re looking at Democrats versus Republicans, so the minority party — the Democrats — which means it’s more favored toward Baton Rouge.”
The move would work in favor of incumbent 6th District Congressman Cleo Fields, who was a candidate for the race which Gov. Jeff Lndry suspended in the wake of the Supreme Court decision.
The ruling stemmed from Louisiana vs. Callais – a consolidation of Robinson vs. Callais – that centered on racial gerrymandering and redistricting in the state of Louisiana following the 2020 United States census. The lead plaintiff, Phillip “Bert” Callais, is a resident of Brusly.
The Supreme Court vote came despite the African American population comprising nearly one-third of the state’s population.
According to the 2020 Census, the Black or African American population in Louisiana was approximately 1,464,023,representing 31.4%of the state’s total population. Louisiana has one of the highest percentages of Black residents in the United States, ranking second behind Mississippi.
The Baton Rouge district would likely be the area to undergo the remap, he said.
It amounts to an intricate balancing act.
“What far-right Republicans don’t understand is that with Congress maps, you have to be within 776, 280 votes – within 50 votes of the other districts,” Kleinpeter said. “It’s not like our legislative maps where you can be off by thousands … when you start changing a precinct, it can run down a rabbit hole chasing this precinct over here and over there.
“We can easily draw a really strong nine Republican and one strong Democrat, so if you start watering districts down you could wind up with a 4-2 map.”
Republicans currently have a two-vote super majority vote.
“But some Republican districts are strong and others are weak,” Kleinpeter said. “If you take 58 percent Democrats and put them in Republican districts, you could end up losing Republicans.
“Drawing congress maps is very difficult – you have the leader of the party, and you have the Speaker of the House you have to protect,” he said. “You don’t want to jeopardize their maps at hole.”
One other issue is looming for the state, Kleinpeter said.
“What people don’t understand is that we will have to do this all over again in five years, after the next census comes out,” he said. “Hopefully we’ll people by that time.”
The 2030 Census will play a key role in the process, but it still requires participation.
“I had plenty of next-door neighbors who didn’t want to fill out their census” he said. “I’m going to push to fill out their census. We miss out on federal money and potentially risk losing a seat. “
Neuty, the iconic Bucktown nutria visits the state capitol, with Myra Lacoste, Denny Lacoste, Lieutenant Governor Billy Nungesser, Dennis Lacoste Sr., and Louisiana state Senator J. Cameron Henry Jr. Neuty was an orphan, rescued by the Lacostes. In March 2023, LDWF agents attempted to confiscate the illegal pet.
VIDALIA, La. — Louisiana State Police arrested 18-year-old Gregory Steele early Sunday morning on two counts of vehicular homicide, one count of underage operating a motor vehicle while intoxicated, one count vehicular negligent injuring and one count careless operation, according to Concordia Parish Jail records.
Steele, 18, a white male, was arrested in connection with an accident that occurred at approximately 1:54 a.m. on Sunday morning on Minorca Road in Vidalia. Two passengers in the vehicle were killed. Steele and another passenger were able to escape the vehicle.
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