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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 06, 2009 01:30 PM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to "a" from "a-" of Utica First Insurance Company (Utica First) (Oriskany, NY). The outlook has been revised to stable from positive.
The rating actions reflect Utica First's successful underwriting initiatives that have led to six years of consistently profitable underwriting results; the company's strong return measures and loss ratios that are favorable to its commercial casualty peers; and strong capitalization that has consistently improved over a five-year period.
These positive rating factors are partially offset by Utica First's geographic concentration, the potential impact of weak economic conditions affecting its contractor's book of business and the potential impact of both natural and man-made catastrophe losses. Nonetheless, operating results over the past 10 years have not been impacted by weather-related losses, and its September 11 losses were relatively modest given its New York City writings.
The rating outlook reflects Utica First's strong capitalization and A.M. Best's expectation that current solid underwriting results will continue during the medium term.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.