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AM Best affirms the A (Excellent) Financial Strength Rating of United Fire & Casualty Group for the 26th consecutive year

Released on: Dec 17, 2019, 09:00 AM
CEDAR RAPIDS, Iowa–December 17, 2019

FinStrRat_A_Excellent-2019AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the property/casualty subsidiaries of United Fire Group, Inc. (UFG) [Nasdaq: UFCS] (collectively known as United Fire & Casualty Group), which operate under an inter-company pooling agreement led by United Fire & Casualty Company. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” of UFG. The outlook of these Credit Ratings (ratings) remains stable. This is the 26th consecutive year United Fire & Casualty Group has earned an A Financial Strength Rating from AM Best, which is their third highest rating.

According to the AM Best news release, the ratings reflect United Fire & Casualty Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the group’s solid risk-adjusted capitalization, diversified product offerings, historically favorable core reserve levels, long-standing agency relationships, solid regional franchise and the financial flexibility afforded by UFG. These positive rating factors are offset partially by the variability in the group’s underwriting and operating results in recent years, driven primarily by continued challenging market conditions, particularly in its commercial auto liability line of business, and exposure to catastrophe and weather-related losses. The Long-Term ICR of UFG recognizes the capital strength of its subsidiaries and that it has no outstanding debt.

“AM Best ratings are a meaningful measure in the insurance industry, with an A rating assigned to companies that have an excellent ability to meet their ongoing insurance obligations,” explained UFG President and CEO Randy Ramlo. “At UFG, we have always prided ourselves on being a financially strong and stable carrier for our customers, committed to fulfilling the important promise we make as an insurance company: the promise of protection.”

AM Best's ratings are an essential tool to help the financial industry and consumers assess an insurer's financial strength, creditworthiness and ability to honor obligations to policyholders worldwide. 

For more information about UFG’s ratings, visit ambest.com

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About UFG Insurance
Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc. (UFG, Nasdaq: UFCS), through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance.

Through our subsidiaries, we are licensed as a property and casualty insurer in 46 states, plus the District of Columbia, and we are represented by approximately 1,100 independent agencies. A.M. Best Company assigns a rating of “A” (Excellent) for members of the United Fire & Casualty Group.

For more information about UFG, visit www.ufginsurance.com.