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- Farmers Insurance rating – a look at the industry giant’s latest performance
Learn what brokers need to know about Farmers’ insurance ratings. Find out how its policies work, what impacts its performance, and why these mean to clients
Farmers Insurance is solidly among the leading insurance companies in the US. However, brokers considering this insurer and its products for their clients shouldn’t take these rankings at face value. While Farmers does rank among the country’s top 10 insurers, it is ranked in the lower half of most P&C insurance lines.
To recommend an insurer like this one, brokers must practice due diligence and check out Farmers’ insurance ratings and other key metrics. Although you may find that this insurer has done well and garnered some decent ratings on important performance indicators, it is advisable to dig deeper. In this review, Insurance Business takes a closer look at critical metrics to help you make informed decisions for your clients.
Farmers insurance ratings: Financial strength
Insurance professionals who need to assess the viability of an insurance provider and its products can first look at their financial strength ratings (FSR). In general, the agencies responsible for issuing these ratings are:
- A.M. Best
- Fitch
- Moody’s
- S&P (Standard & Poor’s)
Farmers Insurance financial strength ratings (2025)
Ratings agency
Rating
Outlook for Farmers
Details
A.M. Best
A (Excellent)
Stable
Strong ability to meet obligations
Fitch
Not rated
n/a
No current public rating for 2025
Moody’s
A3
Under review
Under review for downgrade due to underwriting challenges
S&P
A
Positive
Improved underwriting, upgraded from “stable”
To know more about these ratings agencies, and their methodologies, you can check out our guide on insurance ratings agencies and their importance.
While there is no data yet from Fitch, the ratings of the other agencies should give a sufficient picture of the insurer’s financial strength. Farmers’ insurance ratings from A.M. Best and S&P both affirm that it has solid financials and the ability to pay claims and meet other financial obligations.
S&P Global previously gave Farmers Insurance a BBB+ rating, but this is for their debt/surplus notes as of August 2024. The BBB+ rating is specifically for its surplus notes, but its overall financial strength and insurer credit rating from S&P is at an “A” level.
Moody’s has placed the company under review, although this is largely due to the industry-wide profitability challenges and exposure to natcats as of late. From the individual ratings referenced, Farmers has an overall positive and stable outlook for the rest of 2025.
Farmers Insurance long-term issuer credit ratings (2025)
Agency
Long-term issuer credit rating
Outlook
Notes
A.M. Best
A (Excellent)
Stable
Affirmed in 2025; also assigned BBB+ issue credit rating to surplus notes in 2024
Fitch
Not rated
n/a
No current public rating