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A.M. Best Affirms Credit Ratings of United Fire Group, Inc. and Its Property/Casualty Subsidiaries

November 16, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Nov 16, 2018--A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the property/casualty (P/C) subsidiaries of United Fire Group, Inc. (UFG) [NASDAQ: UFCS] (collectively known as United Fire & Casualty Group), which operate under an inter-company pooling agreement led by United Fire & Casualty Company. Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb” of UFG. The outlook of these Credit Ratings (ratings) remains stable. All companies are headquartered in Cedar Rapids, IA. (See below for a detailed listing of the companies and ratings.)

The ratings reflect United Fire & Casualty Group’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also reflect the group’s solid risk-adjusted capitalization, diversified product offerings, historically favorable core reserve levels, long-standing agency relationships, solid regional franchise and the financial flexibility afforded by UFG. These positive rating factors are offset partially by the variability in United Fire & Casualty Group’s underwriting and operating results in recent years, driven in part by its exposure to catastrophe and weather-related losses, and the continued challenging market conditions in the group’s core markets. The Long-Term ICR of UFG recognizes the capital strength of its subsidiaries and that it has no outstanding debt.

The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed with stable outlooks for United Fire & Casualty Company and its following P/C subsidiaries:

Lafayette Insurance Company Addison Insurance Company United Fire & Indemnity Company United Fire Lloyds Mercer Insurance Company Financial Pacific Insurance Company Mercer Insurance Company of New Jersey, Inc. Franklin Insurance Company UFG Specialty Insurance Company

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181116005420/en/

CONTACT: Robert Valenta

Senior Financial Analyst

+1 908 439 2200, ext. 5291

robert.valenta@ambest.comRaymond Thomson, CPCU, ARe, ARM

Associate Director

+1 908 439 2200, ext. 5621

raymond.thomson@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 11/16/2018 12:46 PM/DISC: 11/16/2018 12:45 PM

http://www.businesswire.com/news/home/20181116005420/en

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