INSURANCE

Farmers Rating Downgraded: The insurance group had its claims-paying ability bumped down from “excellent” to “very good” by ratings firm A.M. Best Co., which cited aftershocks from the January, 1994, Northridge earthquake. The downgrade from A- to B++ applies to eight members of the Farmers pool and five affiliates. A commercial subsidiary, Mid-Century Insurance Co., also was downgraded. Farmers is owned by BAT Industries of Britain. Its Northridge quake losses totaled $1.7 billion at the end of 1994. Best said Farmers’ exposure to potential quake losses nearly equals the group’s surplus.