OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has removed from under review with developing
implications and upgraded the financial strength rating to A-
(Excellent) from B++ (Good) and the issuer credit rating to “a-” from
“bbb” of Founders Insurance Company (Founders) (Des Plaines, IL).
The outlook assigned to both ratings is stable.
The rating upgrades reflect the execution of an inter-company pooling
agreement, effective July 1, 2014, led by Founders’ ultimate parent, Utica
Mutual Insurance Company, (Utica) (New Hartford, NY) under which
Founders will become a 5% participant in the pool. Previously, Founders
was not a member of the pool and was rated separately; however, its
performance was reflected in the pool’s consolidated financial results
as a subsidiary of Utica. The ratings of Utica have been extended to
Founders as a result of its inclusion in the new pooling agreement.
The ratings of Utica and its other affiliates—Graphic Arts Mutual
Insurance Company, Republic – Franklin Insurance Company,
Utica Lloyd’s of Texas, Utica National Assurance Company, Utica
National Insurance Company of Ohio, Utica National Insurance
Company of Texasand Utica Specialty Risk Insurance Company—are
unchanged by these actions.
A.M. Best does not anticipate changes in the ratings of Utica and its
affiliates in the near term; however, negative rating actions could
occur if a supportive level of risk-adjusted capitalization is not
maintained, underwriting results do not improve and operating earnings
do not begin to stabilize.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Best’s Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Company
Adrienne Tortoriello, 908-439-2200,
Senior Financial Analyst
Marshall, 908-439-2200, ext. 5327
Assistant Vice President
Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Source: A.M. Best Company