A.M. Best Revises Outlooks to Positive for Upland Mutual Insurance, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Upland Mutual Insurance, Inc. (Upland) (Junction City, KS).

The Credit Ratings (ratings) and outlooks reflect Upland’s balance sheet strength, which A.M. Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The positive outlooks are an indication of the company’s continued improvement in its operating performance over the past few years due to strategies implemented by the management team. These strategies include rate increases, re-underwriting initiatives, increased deductibles and concentration mitigation. The company has been able to increase surplus substantially over the past five years helping to reduce elevated leverage measures. Surplus growth is derived from net underwriting income and complemented by net investment income, as well as other fee income the company is able to charge in Kansas. Additionally, the company maintains sound liquidity measures and conservative reserving practices.

These positive rating factors are offset partially by Upland’s narrow geographic footprint in Kansas, and product lines that will continue to expose policyholder surplus to tornado, wind and hail storms, and competitive market conditions. However, the company maintains a comprehensive reinsurance program that is expected to mitigate some of the losses stemming from these events.

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.

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A.M. Best

Colette Fearon, +1-908-439-2200, ext. 5548

Financial Analyst

colette.fearon@ambest.com

or

Janet Hernandez, +1-908-439-2200, ext. 5767

Senior Financial Analyst

janet.hernandez@ambest.com

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best