AM Best Upgrades Issuer Credit Rating of Upland Mutual Insurance, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Upland Mutual Insurance, Inc. (Upland) (Junction City, Kansas). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Upland’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The upgrade of the Long-Term ICR is the result of favorable trends in Upland’s balance sheet strength. This is due to continued improvements in policyholder surplus levels, leverage ratios and risk-adjusted capitalization. Overall, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is strongest. Due to Upland’s profitability in recent years, surplus growth has outpaced growth in net premiums written. This has caused strong surplus appreciation in the latest five years and Upland passing the $20 million threshold for surplus. This growth has led to improvements in the company’s leverage ratios and risk-adjusted capitalization consistently. Additionally, Upland has limited scale of operations. The company’s business profile is limited due to the product offerings as a single-state property insurer and geographic concentration in Kansas.

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. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Josie Novak
Financial Analyst
+1 908 439 2200, ext. 5242
[email protected]

Janet Hernandez
Senior Financial Analyst
+1 908 439 2200, ext. 5767
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
[email protected]

Source: AM Best

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