AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Upland Mutual Insurance, Inc. based in Junction City, Kansas. The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The 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 rating upgrades and revised outlooks to stable from positive reflect the consistent positive policyholder surplus growth over the latest five-year period.
The rating upgrades also reflect the overall balance sheet assessment of very strong. Additionally, the rating upgrades recognize Upland’s sustained policyholders surplus growth over the past five years, generated from positive pre-tax operating performance supporting the strongest assessment of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Also, policyholder appreciation continued through Sept. 30, 2026.
The rating upgrades also reflect Upland’s favorable net underwriting leverage; conservative investment portfolio of fixed income investment that generated consistent net investment income; favorable loss reserve development trends on a calendar and accident year basis and strong reinsurance program that protects its balance sheet from tail risk including catastrophe limits that cover a potential 1-in-1,000-year event at the 99.8% VaR. Additionally, Upland eliminated its overall financial leverage by repaying its outstanding balance of Federal Home Loan Bank borrowings.
AM Best assesses Upland’s operating performance as adequate as its five-year average return on revenue and equity, combined ratio and operating ratio, compare favorably with the personal property composite.
The limited business profile reflects Upland’s long-standing market presence in Kansas and distribution network of independent agents. The appropriate ERM assessment reflects Upland’s formalized risk appetite and tolerance statements maintained for key areas, aided by the company’s comprehensive reinsurance program.
Source: AM Best
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