Published:
A.M. Best Revises Outlook to Stable for Upland Mutual Insurance, Inc.
OLDWICK, N.J. - (BUSINESS WIRE) - A.M. Best Co. has revised the outlook to stable from positive and
affirmed the issuer credit rating (ICR) of "bbb" of Upland Mutual
Insurance, Inc. (Upland) (Junction City, KS). Additionally, A.M.
Best has affirmed the financial strength rating (FSR) of B++ (Good) of
Upland. The outlook for the FSR is stable.
The positive outlook previously assigned to Upland's ICR was revised to
stable following the decline in surplus from underwriting and investment
losses. Underwriting losses resulted from increased frequency of wind
and hail storms and the impact of the EF-3 tornado in Chapman, KS.
Investment losses resulted from the unprecedented decline in the capital
markets, which impacted Upland's fixed income and equity investments.
The ratings of Upland reflect its adequate level of risk-adjusted
capitalization, driven by moderate underwriting leverage and
conservative reserving practices. The ratings also recognize the
company's long-standing market presence in Kansas and favorable overall
liquidity measures.
These rating factors are partially offset by Upland's elevated ceded
reinsurance leverage measure, limited financial flexibility and current
business profile, as a single-state, property writer, expose it to
increased competitive market conditions and regulatory and judicial
changes.
For Best's Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including
any additional methodologies and factors that may have been considered,
can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit
rating organization dedicated to serving the financial and health care
service industries, including insurance companies, banks, hospitals and
health care system providers. For more information, visit www.ambest.com.
A.M. Best Co.
Analysts
Kevin Dorsey,
908-439-2200, ext. 5401
kevin.dorsey@ambest.com
or
Rick
Decker, 908-439-2200, ext. 5423
rick.decker@ambest.com
or
Public
Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
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