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

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the $25 million, 7.155% surplus notes, due January 13, 2046, 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 issuance of the surplus notes are expected to be used to support statutory surplus, capital resiliency and operational flexibility. Following the surplus notes issuance, financial leverage at United Educators will remain 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, claimant and beneficiary claims, and all other classes of creditors other than surplus notes holders.

The Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of a+ (Excellent) of United Educators remain unchanged.

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