The ratings of
These positive rating factors are partially offset by the variability in
The Long-Term ICR of UFG recognizes the capital strength of its subsidiaries and the fact that it has no outstanding debt. While
The ratings of ULIC are based on its strategic importance in marketing life insurance and fixed annuities to UFG, its property/casualty parent, more-than-adequate risk-adjusted capitalization, and positive ordinary life sales trends. Partially offsetting these rating factors include declining earnings trends resulting in weaker return ratios, high allocation to, albeit declining, interest-sensitive liabilities, and regional business profile.
Positive rating actions may occur if there is a positive rating action at the parent company. Negative rating actions may occur if ULIC does not meet A.M. Best’s expectations, or if there is a significant decline in risk-adjusted capitalization due to continued trends in operating results or material dividends taken out of the company.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed for
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.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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