AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to 'a-' (Excellent) from 'a' (Excellent) of the property/casualty (P/C) subsidiaries of
Concurrently, AM Best has downgraded the Long-Term ICR to 'bbb-' (Good) from 'bbb' (Good) of UFG. The outlook of these Credit Ratings (ratings) has been revised to stable from negative. All companies are headquartered in
The ratings reflect
The stable outlooks reflect AM Best's expectation of stabilization in
The rating downgrades were driven by the downturn in the group's operating performance through
The ratings also consider the group's diversified product offerings, long-standing agency relationships, solid regional franchise and the financial flexibility afforded by UFG. These positive rating factors are offset partially by the competitive market conditions and resulting adverse reserve development, particularly in its other liability line of business, product liability and commercial auto occurring during the second quarter of 2023. In addition, the group maintains exposure to potential catastrophe and weather-related losses. The Long-Term ICR of UFG recognizes the capital strength of its operating subsidiaries.
The FSR has been downgraded to A- (Excellent) from A (Excellent) and the Long-Term ICRs downgraded to 'a-' (Excellent) from 'a' (Excellent) with outlooks revised to stable from negative of
United Fire Lloyds
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