AM Best Revises Outlooks to Negative for Utica First Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Utica First Insurance Company (Utica First) (Oriskany, NY).

The Credit Ratings (ratings) reflect Utica First’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the Long-Term ICR to negative from stable reflects pressure on Utica First’s balance sheet strength assessment due to erosion in surplus and risk-adjusted capitalization as of the first quarter of 2026, driven by increased volatility in underwriting results. Key balance sheet metrics remain elevated relative to the company’s industry composite and reserve development trends have been mostly unfavorable over the past several years. This negative outlook further reflects pressure on the company’s current neutral business profile assessment due to elevated claim costs associated with its geographic and product concentration in the state of New York.

Utica First’s marginal operating performance reflects inconsistent historical trends as measured by its five- and 10-year combined ratios that compare unfavorably to AM Best’s commercial casualty composite. Underwriting results have been challenged by various market and social inflation conditions in addition to catastrophe and fire-related losses. The neutral business profile assessment reflects the company’s solid position and well-established reputation in its targeted niche markets, which includes small businessowners, restaurants and artisans’ lines of business. AM Best views the company’s ERM as appropriate, based on its risk management framework that includes quantifiable risk appetite and tolerance statements, which are properly aligned with the risk profile.

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