OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to C++ (Marginal) from C+ (Marginal) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “b” from “b-” for United Equitable Insurance Company (United Equitable). Concurrently, A.M. Best has affirmed the FSR of C- (Weak) and the Long-Term ICR of “cc” of American Heartland Insurance Company (American Heartland), its separately rated affiliate. The outlook of these Credit Ratings (ratings) remains stable. Both companies are domiciled in Skokie, IL.
The ratings of United Equitable reflect its balance sheet strength, which A.M. Best categorizes as weak, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
The ratings of American Heartland reflect its balance sheet strength, which A.M. Best categorizes as very weak, as well as its adequate operating performance, limited business profile and marginal ERM.
The companies’ ratings also reflect a trend of increased operating performance in recent years, and the increased stability of that performance as indicated by low volatility of combined and operating ratios. For United Equitable, this increased operating performance assessment was sufficient to mitigate the cumulative impact of increased underwriting and investment leverage measures reported in 2017. For American Heartland, the impacts of these increased leverage measures on its balance sheet strength assessment were more pronounced, offsetting the improved operating performance assessment to result in no change to its rating.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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