Press Release - DECEMBER 12, 2019

AM Best Affirms Credit Ratings of United Fire Group, Inc. and Its Property/Casualty Subsidiaries


CONTACTS:
 Robert Valenta, CPCU
Senior Financial Analyst
+1 908 439 2200, ext. 5291
robert.valenta@ambest.com

Raymond Thomson, CPCU, ARe, ARM
Director
+1 908 439 2200, ext. 5621
raymond.thomson@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 12, 2019
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the property/casualty (P/C) subsidiaries of United Fire Group, Inc. (UFG) [NASDAQ: UFCS] (collectively known as United Fire & Casualty Group), which operate under an inter-company pooling agreement led by United Fire & Casualty Company. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” of UFG. The outlook of these Credit Ratings (ratings) remains stable. All companies are headquartered in Cedar Rapids, IA. (See below for a detailed listing of the companies and ratings.)

The ratings reflect United Fire & Casualty Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the group’s solid risk-adjusted capitalization, diversified product offerings, historically favorable core reserve levels, long-standing agency relationships, solid regional franchise and the financial flexibility afforded by UFG. These positive rating factors are offset partially by the variability in United Fire & Casualty Group’s underwriting and operating results in recent years, driven primarily by continued challenging market conditions, particularly in its commercial auto liability line of business, and exposure to catastrophe and weather-related losses. The Long-Term ICR of UFG recognizes the capital strength of its subsidiaries and that it has no outstanding debt.

The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed with stable outlooks for United Fire & Casualty Company and its following P/C subsidiaries:


  • 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 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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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