|[January 24, 2013]
A.M. Best Withdraws Ratings of Ullico Casualty Company
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has downgraded the financial strength rating to B-
(Fair) from B (Fair) and issuer credit rating to "bb-" from "bb" of Ullico
Casualty Company (headquartered in the District of Columbia). The
outlook for both ratings is negative. Concurrently, A.M. Best has
withdrawn the ratings in response to management's request to no longer
participate in A.M. Best's interactive rating process.
The rating downgrades are a result of Ullico Casualty Company's
continued unprofitable underwriting performance in its discontinued
workers' compensation program business and surety operation and its
further weakened capital position due to additional adverse loss reserve
development associated with those businesses.
In 2012, Ullico Casualty Group, Inc., a susidiary of Ullico Inc.
entered into an agreement with Alterra American Insurance Company (Alterra),
whereby fiduciary and union liability business is now fronted by Alterra
and a portion is then ceded to a newly-formed, unrated captive. Ullico
Casualty Company is currently in run off as all prior managing general
agency relationships (programs) for workers' compensation and commercial
business were terminated in 2012.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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