AM Best Downgrades Credit Ratings of P/C Subsidiaries of United Heritage Financial Group, Inc.; Withdraws Credit Ratings of United Heritage Property & Casualty Company
AM Best has downgraded the Financial Strength Rating (FSR) to C++ (Marginal) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “b” (Marginal) from “bbb-” (Good) of
Lastly, AM Best has withdrawn the ratings of UHPC as UHFG has requested to no longer participate in AM Best’s interactive rating process.
The ratings of UHPC reflect its balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The ratings of SIC reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The ratings of UHLIC reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating downgrades reflect weakening in UHPC’s and SIC’s balance sheet strength assessment due to a material decline in policyholder surplus at third-quarter 2023. UHPC and SIC have experienced significant increases in underwriting losses driven by higher frequency and severity on auto costs, along with higher repair costs due to inflation. UHFG announced on
The negative outlooks reflect AM Best’s concerns with UHPC’s and SIC’s ability to recapitalize their balance sheets and effectively manage the headwinds in the personal auto marketplace, along with their concentrations of auto and property risks. The negative outlooks on UHLIC’s ratings reflect AM Best’s concerns with a significant decline in regulatory capital ratios in 2022 and the financial flexibility of the group as it supports expected capital shortfalls in the P/C business. AM Best will carefully monitor the execution of the group’s multipart strategic plan over the near term.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20231207149667r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />
View source version on businesswire.com: https://www.businesswire.com/news/home/20231207149667/en/
Senior Financial Analyst
+1 908 882 1774
[email protected]
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Director
+1 908 882 2125
[email protected]
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
Source: AM Best
Study Findings on COVID-19 Discussed by a Researcher at Columbia University Mailman School of Public Health (Consistency and Adequacy of Public and Commercial Health Insurance for US Children, 2016 to 2021): Coronavirus – COVID-19
USDA Improves Crop Insurance to Better Support Conservation, Climate-Smart Practices
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News