This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Revises Outlook To Negative For United Fire & Casualty Group And Its Property/Casualty Members

A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings of “a” of United Fire & Casualty Group (UFCG) and its five property/casualty members, which operate under an intercompany pooling agreement led by United Fire & Casualty Company (UFCC) [NASDAQ: UFCS].

Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICR of “a-” of United Life Insurance Company (ULIC), a wholly owned subsidiary of UFCS. The outlook for these ratings is stable. All companies listed above are domiciled in Cedar Rapids, IA. (See below for a detailed listing of companies and ratings.)

The revised outlook for UFCG reflects the decline in the group’s reported underwriting and operating results in recent years, related primarily to the adverse development in 2008 and 2009 of claims related to Hurricane Katrina in Louisiana and an increase in general liability development, including claims for construction defect. The decline has been relative to both UFCG’s own historic norms and to the average of the commercial casualty composite. While continued adverse development of the Katrina-related claims is anticipated, should other underwriting and operating results not meet or exceed historic norms, there is potential for negative rating actions.

The ratings reflect UFCG’s strong risk-adjusted capitalization, which remains fully supportive of the current ratings. The ratings also consider UFCG’s diversified commercial product offerings, the financial flexibility afforded by UFCC and the group’s long-standing agency relationships and strong regional franchise.

Offsetting these factors are the decline in UFCG’s underwriting and operating results (which were previously discussed), its continued exposure to weather- and catastrophe-related losses and the ongoing competitive pressures in its key target markets.

The ratings of ULIC consider its sufficient level of risk-adjusted capitalization, consistently positive operating performance and its positive unrealized gain position in its investment portfolio, a strong position given the current economic climate.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs