AM Best Revises Issuer Credit Rating Outlook to Positive for Utica Mutual Insurance Company and Its Affiliates

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to positive from stable and affirmed Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Utica Mutual Insurance Company (Utica Mutual) (New Hartford, NY) and its intercompany pool participants and reinsured affiliates, collectively referred to as Utica. The outlook of the FSR is stable. (See below for a detailed listing of the companies.)

The Credit Ratings (ratings) reflect Utica’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revised Long-Term ICR outlook to positive from stable reflects the overall strength of Utica’s balance sheet, underpinned by its strongest level of risk adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its strong capital position, organic surplus growth, favorable reserve positions and effective exposure management via underwriting controls and quality reinsurance program. Additional factors include Utica’s strategic investment portfolio and solid liquidity measures, which are enhanced by solid underwriting results and positive operating cash flows. AM Best expects that the group’s risk-adjusted capitalization will be maintained at the strongest level, as measured by BCAR, and that its adequate operating performance will continue over the near term, benefiting from management’s ongoing strategic initiatives, niche specialty market expertise and emphasis on risk management.

Utica’s ratings are supported by the group’s solid operating performance in recent years, driven by increased usage of predictive analytics, improved processing systems and growth in agency appointments, which align with the group’s strategy of driving profitability through selection and guidance. Utica is a multiline property/casualty writer with a diversified mix of commercial and personal lines offerings, recognized as a well-established leader in its target niche specialty markets. The group’s seasoned management team has a proven track record of executing strategy and producing profitable results. Utica maintains a robust ERM program, which puts an ardent emphasis on protecting the balance sheet from event-driven risks and meeting corporate profitability goals. The group utilizes dynamic financial models to project future outcomes and performs adaptive scenario and stress testing. Additionally, environmental, social and governance (ESG) initiatives are embedded in the business strategy.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed, with the Long-Term ICR outlook revised to positive from stable and the FSR outlook maintained at stable, for the following affiliates of Utica Mutual Insurance Company:

• Founders Insurance Company
• Graphic Arts Mutual Insurance Company
• Republic-Franklin Insurance Company
• Utica Lloyd’s of Texas
• Utica National Assurance Company
• Utica National Insurance Company of Ohio
• Utica National Insurance Company of Texas
• Utica Specialty Risk Insurance Company

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 the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christine DePalma, ARM, AIDA, AINS, AIS

Financial Analyst

+1 908 439 2200, ext. 5649

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Rosemarie Mirabella
Director

+1 908 439 2200, ext. 5892

[email protected]

Al Slavin
Communications Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best