Demotech Affirms the Financial Stability Rating® Assigned to Farmers Mutual Relief Association

Columbus, Ohio, August 3, 2012: The Financial Stability Rating® (FSR) of A, Exceptional, assigned to Farmers Mutual Relief Association has been affirmed by Demotech, Inc.  This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.

FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle.  FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).  Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.

About Farmers Mutual Relief Association

Farmers Mutual Relief Association (FMRA) was formed in Wyandot County by four farmers near McCutchenville, Ohio in 1874.  FMRA was incorporated on July 16, 1878 and is committed to providing quality insurance and services to its policyholders that are fairly priced and comparable services to meet the individual needs of all its members.  Their products include Homeowners, Farmowners, Standard Fire, Basic Fire and Agri-Business policies.  They have a full service staff ready to take care of the needs of their policyholders.  Farmers Mutual Insurance Agency, Inc. is a wholly owned subsidiary of FMRA and is a full service agency providing policies through many other insurance companies.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  This philosophy was the catalyst for the Demotech Company Classification System, which was published in Insurance Journal, in order to stratify and categorize insurers into operational categories.  Visit www.demotech.com for more information.