JANUARY 31, 2023 04:06 PM (EST)
AM Best Assigns Issue Credit Rating to United Educators Insurance, A Reciprocal Risk Retention Group’s Surplus Notes
|Janet Hernandez |
Senior Financial Analyst
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+1 908 439 2200, ext. 5432
Manager, Public Relations
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Senior Public Relations Specialist
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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 31, 2023 04:06 PM (EST)
AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the $60 million, 7.79% surplus notes due Jan. 31, 2043, issued by United Educators Insurance, A Reciprocal Risk Retention Group (United Educators) (Burlington, VT). The outlook assigned to this Credit Rating (rating) is stable.
The proceeds from the surplus notes issuance are expected to be used for general purposes, including to support targeted growth and the company’s mission to provide coverage and risk management solutions to educational institutions. The surplus note issuance will result in unadjusted financial leverage of 15%, which is within AM Best’s guidelines for the company’s current rating. United Educators’ liquidity is considered sufficient to service the debt.
The surplus notes are callable by United Educators after seven years, and may be made only with prior approval from the Vermont Department of Financial Regulation. The notes are subordinate to policyholders’ claims as well as other creditors.
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.