OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Upland Mutual Insurance, Inc. (Upland) (Junction City, KS). The outlook of the FSR remains stable.
These Credit Ratings (ratings) reflect Upland’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The positive outlook reflects the improvement in balance sheet strength over the past five years resulting from consistent capital generation through a mix of underwriting, investments and fee income. In addition, Upland maintains a conservative investment portfolio, liquidity measures that are enhanced by positive underwriting and operating cash flows, and improved underwriting leverage.
The adequate operating performance assessment reflects Upland’s underwriting results, which are supplemented by steady net investment income and other income, which have generated consistent operating profits. The company maintains a limited business profile as a writer of personal property in Kansas. ERM is appropriate for the company’s risk profile and is in line with management’s capabilities.
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