A.M. Best Upgrades Issuer Credit Rating of USIC Life Insurance Company
Offsetting these positive rating factors are the potential statutory surplus strain associated with growth in USIC Life’s core business lines, along with modest earnings growth, the company’s limited business profile and potential pressure on sales and profitability stemming from the continuing depressed economy in
The affirmation of USIC’s ratings recognizes its superior capitalization, very strong operating performance over the long term (reflective of profitable underwriting) and local market expertise derived through its niche market focus.
Partially offsetting these positive rating factors are USIC’s geographic risk concentration within
While positive rating action is unlikely in the near term, given the upgrade, factors that could lead to further positive rating actions for USIC Life include continued growth in surplus through organic earnings, a reduction in concentration in its primary business line and further earnings diversity. Factors that could result in negative rating actions for USIC Life include deterioration in operating performance, a substantial decline in risk-adjusted capitalization or loss of support from its parent.
Factors that could result in downward pressure on USIC’s ratings include significant weakening in operating earnings due to deteriorating underwriting performance, or a material increase in catastrophe losses, which weakens overall capitalization. Nevertheless,
Key insurance criteria reports utilized:
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for U.S. and Canadian Life/Health Insurers
• Rating Members of Insurance Groups
• Catastrophe Analysis in A.M. Best Ratings
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• Rating Surety Companies
• Understanding BCAR for Property/Casualty Insurers
This press release relates to rating(s) that have been published on
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Source:
Greenhill & Co. Reports Fourth Quarter Earnings Per Share Of $0.51 And Annual Earnings Per Share Of $1.43
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