A.M. Best Upgrades Credit Ratings of Kansas’ Upland Mutual Insurance

A.M. Best has upgraded the Financial Strength Rating (FSR) to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb-” of Upland Mutual Insurance Inc. in Junction City, Kansas.

The outlooks of these ratings have been revised to stable from positive.

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

The upgrade of Upland’s ratings reflects the improvement in its operating performance over the past five years. Upland has experienced favorable weather activity, and also undertook a number of initiatives including rate increases, higher deductibles and the restructuring of the company’s reinsurance program, which have resulted in improved underwriting profitability.

Upland’s strong balance sheet reflects the company’s overall risk-adjusted capitalization being at the strongest level, its conservative investment portfolio and limited scale of operations. Upland has generated capital consistently over the most recent five years from a mix of underwriting, investments and fee income. The adequate operating performance reflects the company’s underwriting results, which when coupled with steady net investment income and other income, have generated consistent pre-tax operating profits.

Upland maintains a limited business profile as a writer of personal property in the single state of Kansas. ERM is appropriate for Upland’s risk profile as the company continues to identify, quantify and monitor its key risks. The company also performs catastrophe modeling and exposure accumulation analysis in order to manage its concentration risk.

Source: A.M. Best

Topics AM Best Kansas