Demotech Affirms the Financial Stability Rating® Assigned to Fairmont Farmers Mutual Insurance Company

Columbus, Ohio, November 13, 2019: The Financial Stability Rating® (FSR) of A’ (A Prime), Unsurpassed, assigned to Fairmont Farmers Mutual Insurance Company has been affirmed by Demotech, Inc.  This level of FSR is assigned to insurers who possess unsurpassed 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 Fairmont Farmers Mutual Insurance Company

Fairmont Farmers Mutual Insurance Company was formed February 23, 1889, to meet the insurance needs of the people in the Fairmont area.  The company operated from that time until January 1, 2002, as a Township Mutual under Minnesota Statute 67a.  On December 24, 2001 the company received a license to operate under Minnesota Statute 66a.  Up until this conversation, Fairmont Farmers Mutual had only underwritten fire and extended coverage.  The company began underwriting the wind and hail perils on January 1, 2002.  Effective January 1, 2007, Fairmont Farmers Mutual began underwriting Personal and Farm Liability, followed by Equipment Breakdown coverage on August 1, 2009.  Today, as in 1889, the company is controlled by a local board of directors, management and staff.  Fairmont Farmers Mutual has grown ever since.  For more than 125 years, Fairmont Farmers Mutual has remained financially sound, providing stable rates and fair, prompt claim settlements.

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.  Visit for more information.

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