AM Best Assigns Issue Credit Rating to United Educators Insurance, A Reciprocal Risk Retention Group’s Surplus Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the $60 million, 7.79% surplus notes due Jan. 31, 2043, issued by United Educators Insurance, A Reciprocal Risk Retention Group (United Educators) (Burlington, VT). The outlook assigned to this Credit Rating (rating) is stable.

The proceeds from the surplus notes issuance are expected to be used for general purposes, including to support targeted growth and the company’s mission to provide coverage and risk management solutions to educational institutions. The surplus note issuance will result in unadjusted financial leverage of 15%, which is within AM Best’s guidelines for the company’s current rating. United Educators’ liquidity is considered sufficient to service the debt.

The surplus notes are callable by United Educators after seven years, and may be made only with prior approval from the Vermont Department of Financial Regulation. The notes are subordinate to policyholders’ claims as well as other creditors.

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