S&P Lowers Farmers & Mechanics Mutual Ratings to ‘Bpi’

Standard & Poor’s Ratings Services announced that it has lowered its counterparty credit and financial strength ratings on West Virginia-based Farmers & Mechanics Mutual Insurance Co. to ‘Bpi’ from ‘BBpi’ “because of F&M’s continuing weak operating performance, geographic concentration, and reduced capitalization and surplus levels.”

S&P indicated that the company, which began doing business in 1878, “writes mainly homeowners multi-peril, fire, and farmowners insurance in West Virginia, which is its only licensed state.”

It operates primarily through independent agents, and is unaffiliated with any other insurance company. The ratings are on a “stand-alone basis,” noted S&P credit analyst Alan Koerber.