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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Affirms Ratings Of Unitrin, Inc. And Its Subsidiaries

Stocks in this article: UTR

A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of Unitrin Property and Casualty Insurance Group (Unitrin P&C) and its members. A.M. Best also has affirmed the FSRs of A- (Excellent) and ICR of “a-” of the life/health subsidiaries collectively referred to as Unitrin Life & Health Group (Unitrin L&H) and the separately rated Reserve National Insurance Company (Reserve National) (Oklahoma City, OK). These companies are all subsidiaries of the publicly-traded parent, Unitrin, Inc. (Unitrin) [NYSE: UTR].

Concurrently, A.M. Best has affirmed the ICR and senior debt ratings of “bbb-” on unsecured senior notes and senior unsecured debt, as well as “bb” on preferred stock of Unitrin, which is included in Unitrin’s “automatic shelf” that expires November 2, 2013. The outlook for all the above ratings is stable, except for the ratings of Reserve National, which is negative. All companies are headquartered in Chicago, IL, unless otherwise specified. (See link below for a detailed listing of the companies and ratings.)

The affirmation of the ratings for Unitrin P&C reflects its adequate risk-adjusted capitalization and balance sheet liquidity, historically profitable earnings, diverse business profile, long-standing independent agency relationships, the actions management has taken to improve earnings, as well as Unitrin’s position as one of the 20 largest personal lines writers in the United States. The ratings also acknowledge excess capital within the organization and the added financial flexibility of Unitrin to raise capital through equity or debt offerings during favorable markets.

Partially offsetting these positive rating factors is Unitrin P&C’s below average operating performance and elevated expense ratio, challenging underwriting and investment markets, combined with above average leverage ratios and negative operating cash flows each of the last three years.

Unitrin P&C’s capitalization adequately supports its underwriting, investment and business risks. Earnings generally have been favorable over the last five years, despite underwriting losses from severe weather-related events. Unitrin P&C maintains a diverse business profile with a strong market presence, good geographic spread of risk, multi-channel distribution and long-standing agency relationships. The ratings and outlook also take into consideration actions by management to improve earnings, the financial flexibility to raise capital through equity or debt during favorable markets and excess capital within Unitrin’s Fireside Bank, which is in run off and may be available if needed.

1 of 3

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!

Markets

DOW 17,651.86 +294.99 1.70%
S&P 500 2,048.61 +35.72 1.77%
NASDAQ 4,732.3450 +88.0330 1.90%

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