A.M. Best Revises Outlook for Louisiana Farm Bureau Mutual Insurance Company to Stable

Business Wire, May 6, 2008

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B (Good) and issuer credit rating (ICR) of "bbb-" of Louisiana Farm Bureau Mutual Insurance Company (LFB) (Baton Rouge, LA). The outlook for both ratings has been revised to stable from negative.

The ratings reflect LFB's consistent investment income, efficient cost structure and strong local market presence. The ratings also recognize LFB's sponsorship by the Louisiana Farm Bureau Federation, which facilitates marketing efforts and enhances customer loyalty and affinity. The stable outlook is based on LFB's recently improved risk-adjusted capitalization, post hurricanes Katrina and Rita, as well as recent catastrophe mitigation efforts.

The company's negative rating attributes include its geographic concentration and exposure to catastrophic storm losses, which is evident in the historical volatility of its underwriting performance and subsequent fluctuations in operating results. This was particularly evident in 2005, as hurricanes Katrina and Rita made landfall in Louisiana as major hurricanes, resulting in the largest underwriting loss and decline in surplus in the company's history.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.