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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 29, 2003 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Very Good) of United Casualty & Surety Insurance Company (Boston, MA). The rating outlook is stable.
The rating action reflects the company's modest underwriting leverage and historically favorable loss ratio in combination with management's continued focus in surety. These factors are supported by the company's conservative balance sheet, complimented by collateral obtained in conjunction with contract surety bonds.
Offsetting these positive rating factors is the company's improved yet uncompetitive expense structure which has led to sub-par operating profitability and limited internal capital accumulation.
Despite these concerns, the company's conservative balance sheet and improving operating profitability achieved through strict underwriting and management's use of collateral account for the stable rating outlook.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.