Best’s News & Research Service - February 12, 2026 08:46 AM (EST)
AM Best Revises Issuer Credit Rating Outlook to Stable for Members of United Equitable Insurance Group
- February 12, 2026 08:46 AM (EST)
//BestWire// - AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of C (Weak) and the Long-Term ICRs of “ccc+” (Weak) of United Equitable Insurance Company and American Heartland Insurance Company, which are referred to as United Equitable Insurance Group or UEIG. Both companies are domiciled in Morton Grove, IL. The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect UEIG’s balance sheet strength, which AM Best assesses as very weak, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
The revision of the Long-Term ICR outlook to stable from negative reflects strengthening of the balance sheet strength metrics and overall risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), following an increase in policyholder’s surplus over the past two-year period. Surplus growth in 2024 benefited from a considerable improvement in net underwriting income, which was driven by rate, and market conditions in the non-standard auto segment. While surplus growth in 2025 was driven by the group’s investment portfolio as significant unrealized gains offset a small net underwriting loss through the first nine months of 2025. Although balance sheet strength metrics have improved following an increase in surplus, underwriting and reserve leverage measures remain elevated when compared with the private passenger non-standard auto composite.
Moreover, there has been a material increase in equity holdings in 2025 resulting in an elevated common stock leverage, thus exposing the group to fluctuations in the equity market.
United Equitable Insurance Group’s adequate operating performance is driven by its overall favorable underwriting performance, which compares favorably with the private passenger non-standard auto composite. AM Best assesses the group’s business profile as limited due to its product and geographic risk concentrations as a private passenger non-standard auto insurance writer in Illinois. AM Best assesses the group’s ERM as marginal as risk management capabilities are not aligned fully with the group’s profile as the framework continues to evolve.
The stable outlooks reflect AM Best’s expectation that balance sheet strength metrics continue to stabilize in the intermediate term and remain supported by an adequate operating performance. Furthermore, the expectation is that there will be less volatility in policyholders’ surplus and overall risk-adjusted capitalization.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.