National Farm Life Insurance Company just jumped from “Good” to “Excellent” in AM Best’s November 2025 ratings announcement. The Fort Worth-based insurer earned an A- (Excellent) financial strength rating, up from B++ (Good).
If you hold a National Farm Life policy in Texas, this matters. The upgrade signals stronger financial backing for your coverage. Here’s what changed and what it means for your wallet.
What Triggered National Farm Life’s Rating Jump?
AM Best upgraded National Farm Life based on three specific improvements:
- Enterprise risk management got sharper. The company now catches and mitigates risks faster than it did 12-24 months ago, according to AM Best’s assessment of their operational controls.
- Capital reserves hit the “strongest level” on AM Best’s Capital Adequacy Ratio (BCAR) scale. This means they’ve got enough cash cushion to handle major claim spikes without touching policyholder funds.
- Investment strategy stayed conservative. No risky bets. The company keeps assets in stable securities with good credit quality, protecting your premiums from market volatility.
The outlook shifted from “positive” to “stable.” That’s not a downgrade. It means AM Best expects these improvements to stick, not fluctuate.
Should Texas Policyholders Expect Lower Premiums?
Not immediately. Premium changes don’t follow rating upgrades overnight.
But here’s what does change: National Farm Life can now compete harder for new customers. An A- rating opens doors to clients who require “Excellent” financial strength from their life insurer. More competition in Texas typically pushes prices down over 6-12 months.
Three-year earnings trends show steady growth, though premium growth across all product lines has been modest. The company’s expanding without overextending, which keeps long-term pricing stable.
If you’re shopping for life insurance in Texas right now, this upgrade makes National Farm Life worth comparing against carriers like ACLI-member companies with similar ratings.
How Does National Farm Life Compare to Other Texas Insurers?
The upgrade puts National Farm Life in the top tier of regional life insurers. Most Texas-based carriers sit at B++ or lower. An A- rating matches what you’d see from larger national players, but with a regional focus.
| Rating Category | Before Upgrade | After Upgrade |
|---|---|---|
| Financial Strength | B++ (Good) | A- (Excellent) |
| Issuer Credit | bbb+ (Good) | a- (Excellent) |
| Outlook | Positive | Stable |
Geographic concentration in Texas remains significant. That’s both strength and limitation—strong local market knowledge, but less diversification than multi-state carriers.
What This Means for Your Policy’s Financial Security
Higher ratings equal stronger claim-paying ability. If you filed a death benefit claim tomorrow, National Farm Life’s improved capital position means faster, more certain payout.
The “very strong” balance sheet assessment from AM Best reflects:
- Risk-adjusted capital at the highest measured level (BCAR methodology shows they can absorb unexpected losses without impacting operations)
- Conservative asset allocation reduces the chance of investment losses bleeding into policyholder reserves
- Good asset credit quality means the bonds and securities backing your policy are investment-grade, not speculative
For term life holders, this matters less day-to-day. For whole life or universal life policyholders, stronger financials protect your cash value accumulation over 20-30+ year timelines.
Is National Farm Life a Good Choice for New Policies?
Depends on your priorities.
You should consider National Farm Life if:
- You live in Texas and want a regional carrier with local claims service
- You need an “Excellent” rated insurer but prefer not dealing with massive national corporations
- You value conservative investment strategies over aggressive growth plays
You might skip them if:
- You need coverage in multiple states (their footprint is Texas-heavy)
- You want the absolute lowest premiums (regional carriers rarely undercut national giants on price alone)
- You require exotic policy riders that smaller insurers don’t offer
The National Association of Insurance Commissioners (NAIC) tracks complaint ratios. Check National Farm Life’s complaint history against Texas averages before buying.
What Happens Next for National Farm Life?
Stable outlook means AM Best expects no rating changes for 12-24 months minimum. The company needs to maintain current risk management standards and capital levels.
Modest premium growth suggests they’re not chasing market share aggressively. That’s actually good for existing policyholders—rapid expansion often precedes financial strain.
Watch for potential product expansions. Insurers with improved ratings often launch new policy types or riders to capitalize on enhanced credibility. If you’re already a customer, you might see new conversion options or add-on coverage in 2026.
You can verify current ratings and updates directly through AM Best’s rating portal or by contacting the Texas Department of Insurance.
Frequently Asked Questions
Does the AM Best upgrade affect my current National Farm Life policy?
Your coverage terms don’t change. But your policy is now backed by an insurer with stronger financial reserves and improved risk management. This primarily improves claim-paying reliability over the long term, especially for permanent life insurance with multi-decade timelines.
Will National Farm Life lower premiums after the upgrade?
Not directly. Premium pricing depends on actuarial risk calculations, not credit ratings. However, improved ratings can attract more policyholders, which spreads risk across a larger pool and may stabilize or reduce pricing over 6-12 months. Existing policies won’t see automatic rate cuts.
How does National Farm Life’s A- rating compare to major insurers?
An A- (Excellent) rating puts National Farm Life in the same tier as many household-name life insurers. The difference is geographic reach—National Farm Life focuses on Texas, while carriers like MetLife or Prudential operate nationally. Financial strength is comparable; market presence differs.
Should I switch to National Farm Life from my current insurer?
Only if your current insurer has a lower rating or you’re unhappy with service. Switching life insurance policies often means new underwriting, potentially higher premiums if your health has changed, and loss of accumulated benefits on permanent policies. Compare ratings, premiums, and policy features before making changes.
Where can I verify National Farm Life’s current AM Best rating?
Check AM Best’s official rating website for real-time updates. You can also contact the Texas Department of Insurance to verify licensing and complaint history. National Farm Life’s website may display their current rating as well.
Bottom Line
National Farm Life’s jump to A- (Excellent) reflects real operational improvements—stronger capital reserves, better risk management, and conservative investments. For Texas policyholders, that means more financial security backing your coverage.
No immediate premium changes. But improved ratings typically increase competition, which benefits consumers over time. If you’re shopping for life insurance in Texas, National Farm Life now competes directly with higher-rated national carriers while maintaining regional focus.
The stable outlook suggests these improvements will last. That’s what matters for long-term policies.