OCTOBER 20, 2020 12:12 PM (EDT)
AM Best Upgrades Credit Ratings of Utica Mutual Insurance Company and Its Affiliates
|Raymond Thomson, CPCU, ARe, ARM |
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Manager, Public Relations
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Director, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 20, 2020 12:12 PM (EDT)
AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Utica Mutual Insurance Company (Utica Mutual) (New Hartford, NY) and its intercompany pool participants and reinsured affiliates, collectively referred to as Utica. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. (See below for a detailed listing of the companies.)
The ratings reflect Utica’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades reflect Utica’s improved underwriting and operating results in recent years. These results were driven primarily by favorable loss experience and improved risk selection in its leading lines of business, commercial liability and workers’ compensation, as well as the ultimate management of asbestos & environmental exposure.
Utica’s ratings also recognize the group’s solid risk-adjusted capitalization, strong risk management culture, and local market presence and expertise in target markets. Further, the ratings take into account management’s continuing efforts to achieve rate adequacy and operational efficiencies, and to maintain stability in reserve development.
Partially offsetting these positive factors are the group’s elevated expense structure; while consistent year over year and indicative of greater focus on expense control, the expense ratio remains above the industry composite.
The FSR has been upgraded to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” from “a-” with the outlooks revised to stable from positive for the following affiliates of Utica Mutual 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 Guide to 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.