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FOR IMMEDIATE RELEASE
OLDWICK - JULY 14, 2025 11:52 AM (EDT)
AM Best has commented that the Long-Term Issue Credit Rating of “bbb-” (Good) on the $70 million, 9% senior unsecured notes, due 2039, originally issued on May 31, 2024, by United Fire Group, Inc. (UFG) (Cedar Rapids, IA) remains unchanged despite the additional notes being added as part of the same series. UFG has announced that it has issued an additional $30 million of senior unsecured notes under that offering, bringing the total to $100 million. The outlook of the Credit Rating (rating) is stable.
The rating reflects United Fire & Casualty Group’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The stable outlook reflects AM Best’s expectation of stabilization in United Fire & Casualty Group’s operating performance and balance sheet fundamentals over the intermediate term given management’s initiatives intended to improve operating performance.
The rating also considers the group’s well-established position within core markets, which provides a diversified range of product offerings in commercial lines. The group also benefits from the solid regional franchise, local market knowledge, longstanding agency relationships and focus on providing superior customer service. Despite these strengths, the group remains exposed to potential catastrophe and weather-related losses. The Long-Term Issuer Credit Rating of “bbb-” (Good) of UFG recognizes the capital strength of its operating subsidiaries. For additional information on UFG, please refer to the press release issued June 5, 2024.
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.