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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 07, 2006 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating (FSR) to B+ (Very Good) from B (Fair) of Ulico Casualty Company (Ulico Casualty) (Delaware). The outlook for this rating has been revised to stable from positive. In addition, A.M. Best has affirmed the FSR of B+ (Very Good) of The Union Labor Life Insurance Company (Union Labor Life) (Silver Springs, MD). The outlook for this rating is stable. Concurrently, A.M. Best has affirmed the FSR of B- (Fair) of Ulico Standard of America Casualty Company (USA Casualty) (California). The outlook for this rating has been revised to stable from negative. These companies are wholly-owned subsidiaries of the holding company, ULLICO Inc. (Washington, DC).
The FSR upgrade reflects Ulico Casualty's improvement in a number of key areas that have led to strengthened capitalization, operating performance and internal control standards. Policyholder surplus has grown for three consecutive years due in large part to the significant improvement in claims handling processes and controls. During the past two years, Ulico Casualty has devoted considerable resources to corporate governance and risk management. The level of customer loyalty and affinity toward the Ulico name gives it a sustainable competitive advantage in its core lines of fiduciary liability and union general liability.
The affirmation of Union Labor Life's FSR reflects its strengthened capital position and improved invested asset quality from earlier periods, as well as its established niche in the Taft-Hartley market.
The FSR affirmation and revised outlook of USA Casualty, which is now in run-off, is based on the company's maintenance of sufficient capital to pay reported loss and loss adjustment expenses that arise from business written in prior years. The company's risk-adjusted capitalization is supportive of its FSR.
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