A.M. Best Affirms Ratings of Farmers New World Life Insurance Company

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit rating of "a" of Farmers New World Life Insurance Company (FNWL)
(Mercer Island, WA). The outlook for both ratings is stable.

FNWL is owned by Farmers Group Inc. (Los Angeles, CA), a leading provider of
personal lines insurance, whose ultimate parent is Zurich Financial Services
(ZFS) (Switzerland).

The ratings of FNWL are based on its role within the Farmers Insurance Group,
which gives FNWL access to the Farmers multi-line agency force. The ratings also
reflect FNWL`s profitable statutory operating results, growth in life insurance
premium and adequate risk-adjusted capitalization.

Partially offsetting these factors are FNWL`s decline in absolute capital and
surplus due to investment losses and dividends paid to ZFS, exposure to interest
sensitive collateralized mortgage-backed securities and a block of annuity
business with little or no surrender charge protection.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

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.

A.M. Best Co.
Analysts
Louis Savarese
(908) 439-2200, ext. 5168
louis.savarese@ambest.com
or
William Pargeans
(908) 439-2200, ext. 5359
william.pargeans@ambest.com
or
Public Relations
Jim Peavy
(908) 439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009