Best’s News & Research Service - December 06, 2019 11:12 AM (EST)
AM Best Revises Outlooks to Stable for United Heritage Property & Casualty Company
- December 06, 2019 11:12 AM (EST)
Oldwick //BestWire// - AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of United Heritage Property & Casualty Company (UHPC) (Meridian, ID).
The Credit Ratings (ratings) reflect UHPC’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).
The revised outlooks to stable reflect AM Best’s expectation of UHPC maintaining strong balance sheet strength and exhibiting improvement in underwriting performance given continued enhancement of its ERM program through effective concentration management, as well as maintaining strong agency relationships.
UHPC’s balance sheet strength reflects the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), partially offset by limited surplus growth due to underwriting losses and ongoing dividend payments.
UHPC’s operating performance has trended downward in recent years, largely due to weather events and above average auto losses, which has resulted in underwriting results comparing unfavorably with the composite on a five-year average basis. UHPC operates in four states with a product concentration in homeowners, private passenger automobile and farmowners lines of business. AM Best views UHPC’s ERM as marginal due to some risk management capabilities not being aligned with the overall risk profile of the company; however, there has been an increased focus to formalize and enhance the ERM framework including exposure management and expanded reinsurance protection.
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.