AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Upland Mutual Insurance, Inc. (Upland) (Junction City, KS).
The Credit Ratings (ratings) reflect Upland’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlooks to positive from stable reflect Upland’s continued strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and continued improvement in Upland’s balance sheet metrics to a level that aligns with higher-rated balance sheets.
AM Best said Upland has continued to bolster surplus levels, while simultaneously maintaining low and underwriting leverage measures. Underwriting leverage measures continue to compare very favorably with the personal property composite averages. Upland has produced additions to surplus in nine of the past 10 years, with 2022 being the only exception due to unrealized losses and market volatility.
Additions to surplus have occurred despite paying down Federal Home Loan Bank (FHLB) debt over the past five years and maintaining principal balances in its investment portfolio.
The credit ratings agency said Upland maintains favorable reserve development in each of the past 10 calendar and accident years and low reserve leverage measures that continue to compare favorably with the composite despite inflation pressures.
Source: AM Best
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