A.M. Best Upgrades Ratings of Umialik Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and issuer credit rating (ICR) to “a” from “a-” of Umialik Insurance Company (UIC) (Anchorage, AK). The ratings have been removed from under review with positive implications and assigned a stable outlook.

Concurrently, A.M. Best has assigned an FSR of A (Excellent) and ICR of “a” to Arizona Automobile Insurance Company (AAIC) (Phoenix, AZ). Both companies were acquired by Western National Mutual Insurance Company (Edina, MN). All companies are members of the Western National Insurance Group. The outlook assigned to these ratings is stable.

The rating actions follow policyholder and regulatory approval and reflect the participation of UIC and AAIC as members in the intercompany pooling agreement of the Western National Mutual Insurance Company pool, effective January 1, 2011.

UIC, a regional property/casualty insurance company, will continue to operate as a separate entity writing commercial and personal lines in Alaska and Washington. AAIC is a writer of non-standard automobile business, currently focused in Arizona and California. Both companies are joining a larger, more diversified insurance group, which will result in greater economies of scale and broadened opportunities for additional product distribution.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “Catastrophe Risk Management Incorporated Within the Rating Analysis”; and “Natural Catastrophe Stress Test Methodology.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Kevin DorseySenior Financial Analyst
908-439-2200, ext. 5401
[email protected]
orRick DeckerAssistant Vice President
908-439-2200, ext. 5423
[email protected]
orRachelle MorrowSenior Manager, Public Relations
908-439-2200, ext. 5378
[email protected]
orJim PeavyAssistant Vice President, Public Relations
908-439-2200, ext. 5644
[email protected]

Source: A.M. Best Co.