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Article: In Brief: Moody's Cuts State Farm Units.(ratings for State Farm Life and Accident Assurance Co., State Farm Life Insurance Co., State Farm Mutual Automobile Insurance Co. are downgraded)(Brief Article)
- Article from:
- American Banker
- Article date:
- July 29, 2003
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Moody's Investors Service Inc. has reduced the insurance financial strength ratings of State Farm Mutual Automobile Insurance Co., State Farm Life Insurance Co., and State Farm Life and Accident Assurance Co. to Aa1, from Aaa.
The downgrades came after a review begun in March, the rating agency said last week. The outlook for the new ratings is stable.
Moody's cited State Farm Group's weak operating performance and materially reduced capital base after three years of operating losses and two years of equity market declines. As a result of these losses, group net worth fell from a high of $45.8 billion at the end of 1999 to $31.8 billion three years ...