A.M. Best Affirms Credit Ratings of United Fire Group, Inc. and Its Property/Casualty Subsidiaries
November 16 2018 - 12:46PM
Business Wire
A.M. Best has affirmed the Financial Strength Rating
(FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “a” of the property/casualty (P/C) subsidiaries
of United Fire Group, Inc. (UFG) [NASDAQ: UFCS] (collectively known
as United Fire & Casualty Group), which operate under an
inter-company pooling agreement led by United Fire & Casualty
Company. Concurrently, A.M. Best has affirmed the Long-Term ICR of
“bbb” of UFG. The outlook of these Credit Ratings (ratings) remains
stable. All companies are headquartered in Cedar Rapids, IA. (See
below for a detailed listing of the companies and ratings.)
The ratings reflect United Fire & Casualty Group’s balance
sheet strength, which A.M. Best categorizes as very strong, as well
as its adequate operating performance, neutral business profile and
appropriate enterprise risk management.
The ratings also reflect the group’s solid risk-adjusted
capitalization, diversified product offerings, historically
favorable core reserve levels, long-standing agency relationships,
solid regional franchise and the financial flexibility afforded by
UFG. These positive rating factors are offset partially by the
variability in United Fire & Casualty Group’s underwriting and
operating results in recent years, driven in part by its exposure
to catastrophe and weather-related losses, and the continued
challenging market conditions in the group’s core markets. The
Long-Term ICR of UFG recognizes the capital strength of its
subsidiaries and that it has no outstanding debt.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been
affirmed with stable outlooks for United Fire & Casualty
Company and its following P/C subsidiaries:
- Lafayette Insurance Company
- Addison Insurance Company
- United Fire & Indemnity
Company
- United Fire Lloyds
- Mercer Insurance Company
- Financial Pacific Insurance
Company
- Mercer Insurance Company of New Jersey,
Inc.
- Franklin Insurance Company
- UFG Specialty Insurance Company
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181116005420/en/
Robert ValentaSenior Financial Analyst+1 908
439 2200, ext. 5291robert.valenta@ambest.com
Raymond Thomson, CPCU, ARe, ARMAssociate
Director+1 908 439 2200, ext.
5621raymond.thomson@ambest.com
Christopher SharkeyManager, Public Relations+1
908 439 2200, ext. 5159christopher.sharkey@ambest.com
Jim PeavyDirector, Public Relations+1 908 439
2200, ext. 5644james.peavy@ambest.com
United Fire (NASDAQ:UFCS)
Historical Stock Chart
From Mar 2024 to Apr 2024
United Fire (NASDAQ:UFCS)
Historical Stock Chart
From Apr 2023 to Apr 2024