AM Best Upgrades Issuer Credit Ratings of Utica Mutual Insurance Company and Its Affiliates

NOVEMBER 13, 2024 12:13 PM (EST)

AM Best Upgrades Issuer Credit Ratings of Utica Mutual Insurance Company and Its Affiliates

CONTACTS:

FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 13, 2024 12:13 PM (EST)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "a+" (Excellent) from "a" (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Utica Mutual Insurance Company (Utica Mutual) (New Hartford, NY) and its intercompany pool participants and reinsured affiliates, collectively referred to as Utica. In addition, AM Best has revised the Long-Term ICR outlooks to stable from positive while the outlook of the FSR is stable. (See below for a detailed listing of the companies.)

The Credit Ratings (ratings) reflect Utica's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The Long-Term ICR upgrade reflects the overall strength of Utica's balance sheet, underpinned by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The upgrade further reflects Utica's strong capital position, organic surplus growth, favorable reserve positions and effective exposure management via underwriting controls and quality reinsurance program. Overall liquidity ratios are favorable despite increased levels of Schedule BA assets and below investment grade bonds, which are high relative to the commercial casualty composite. AM Best expects that the group's risk-adjusted capitalization will be maintained at the strongest level, as measured by BCAR, and that its operating performance trends will remain favorable, benefiting from management's ongoing strategic initiatives, niche specialty market expertise and emphasis on risk management.

Utica's ratings are supported by the group's solid operating performance with favorable underwriting results and strong operating cash flows that have benefited from increased usage of predictive analytics, improved processing systems and growth in agency appointments, which align with the group's strategy of driving profitability through selection and guidance. Utica is a multiline property/casualty writer with a diversified mix of commercial and personal lines offerings and is recognized as a well-established leader in its target niche specialty markets. The group's seasoned management team has a proven track record of executing strategy and producing profitable results. Utica maintains a robust ERM program, which puts an ardent emphasis on protecting the balance sheet from event-driven risks and meeting corporate profitability goals. The group utilizes dynamic financial models to project future outcomes and performs adaptive scenario and stress testing.

The FSR of A (Excellent) has been affirmed with a stable outlook while the Long-Term ICRs have been upgraded to "a+" (Excellent) from "a" (Excellent) with the outlooks revised to stable from positive for the following affiliates of Utica Mutual Insurance Company:

• 
  
• Founders Insurance Company
• 
  
• Graphic Arts Mutual Insurance Company
• 
  
• Republic-Franklin Insurance Company
• 
  
• Utica Lloyd's of Texas
• 
  
• Utica National Assurance Company
• 
  
• Utica National Insurance Company of Ohio
• 
  
• Utica National Insurance Company of Texas
• 
  
• Utica Specialty Risk 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 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.