Raul Vargas President & Chief Executive Officer | Farmers Insurance
Farmers Insurance Exchange has announced a change to the reset rate for its 4.747% Surplus Notes due November 1, 2057. The notes, originally issued in October 2017 with a fixed interest rate, were set to transition to a floating LIBOR-based rate if not called by November 1, 2037.
Due to the discontinuation of LIBOR following the enactment of the Adjustable Interest Rate (LIBOR) Act by Congress in March 2022, the fallback reset rate was initially defined as a fixed rate of 4.747% per annum. However, on September 4, 2025, Farmers Exchange and The Bank of New York Mellon Trust Company, N.A., acting as fiscal agent, executed an amendment to the Fiscal Agency Agreement that changes this reset rate.
The amendment updates the reset rate for the 2057 Notes to a floating rate based on Term SOFR with a floor interest rate of 4.747% per annum. This aligns the terms of these notes with those of other instruments issued by Farmers Exchange and related entities Truck Insurance Exchange and Fire Insurance Exchange. These entities had previously replaced references to USD LIBOR in their own trust surplus notes with CME Term SOFR plus a tenor spread adjustment.
According to Farmers Insurance Exchange, "This press release applies only to the 2057 Notes."
The company also noted that these notes have not been registered under the Securities Act of 1933 or any state securities law and are offered only to qualified institutional buyers or non-U.S. persons under specific exemptions.
"Farmers Insurance" and "Farmers" are tradenames for a group of insurers providing insurance for automobiles, homes, small businesses and other insurance and financial services products. For more information about Farmers Insurance, visit Farmers.com or follow Farmers on Twitter @WeAreFarmers, on Instagram @WeAreFarmers and Facebook.com/FarmersInsurance.
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