AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to & # 39; a & # 39; from & # 39; a – & # 39; of the property / accident subsidiaries and affiliated insurance companies of Kemper Corp., collectively referred to as Kemper Property & Casualty Group.
Kemper P & C's ratings reflect the strength of the balance sheet, which AM Best categorizes most strongly, as well as adequate operational performance, neutral company profile and appropriate corporate risk management (ERM).
The rating upgrades reflect that Kemper P&C has consistently maintained its risk-adjusted capitalization measure at its highest level over the past few years, even when paying substantial dividends to shareholders. In addition, the group's loss reserves have generally developed favorably over time.
AM Best said the group has demonstrated its ability to generate organic surpluses through investment and fee and service revenues, which have been enhanced in recent years through profitable underwriting performance.
However, the rating agency said Kemper P & C's strong balance sheet is dampened by the payment of shareholder dividends, which contributed to a decline in policyholder surplus over the past five years. The group's invested capital provides an above-average return, but has a higher risk profile than comparable funds, with an above-average allocation to below investment grade bonds and limited partnerships and similar instruments. Nevertheless, these risks are well managed and supported by the current level of capital.
Kemper P & C's operational performance has benefited from improved underwriting performance in recent years, AM Best said, noting that the group's overall performance statistics compare favorably with peers. The group has also taken steps to diversify its business profile and extend the scope of its ERM.
The stable rating outlook reflects AM Best's expectation that the balance sheet strength of the rated insurance businesses will remain at the strongest rating level, supported by the strongest level of risk-adjusted capitalization. They further reflect the expectation that the operating insurance companies will maintain their consistent operating results, supported by their current business profile.
The FSR has been upgraded to A (Excellent) from A- (Excellent) and the Long Term ICR & # 39; s to “a” from “a-” with the outlook revised to stable from positive for the members of the Kemper Property / Casualty Group, listed below:
- Trinity Universal Insurance Co.
- Alpha Property & Casualty Insurance Co.
- Capitol County Mutual Fire Insurance Co.
- Charter Indemnity Co.
- Financial Indemnity Co.
- Infinity Insurance Co.
- Infinity Assurance Insurance Co.
- Infinity Auto Insurance Co.
- Infinity Casualty Insurance Co.
- Infinity Indemnity Insurance Co.
- Infinity Preferred Insurance Co.
- Infinity Safeguard Insurance Co.
- Infinity Security Insurance Co.
- Infinity Select Insurance Co.
- Infinity Standard Insurance Co.
- Infinity County Mutual Insurance Co.
- Kemper Independence Insurance Co.
- Merastar Insurance Co.
- Mutual Savings Fire Insurance Co.
- Kemper Financial Indemnity Co.
- Old Reliable Casualty Co.
- Insurance Co.
- Worldwide Direct Auto Insurance Co.
- Worldwide Insurance Co.
- Union National Fire Insurance Co.
- United Casualty Insurance Company of America
- Unitrin Advantage Insurance Co.
- Unitrin Auto and Home Insurance Co.
- Unitrin County Mutual Insurance Co.
- Unitrin Direct Insurance Co.
- Unitrin Direct Property & Casualty Co.
- Unitrin Preferred Insurance Co.
- Unitrin Safeguard Insurance Co.
- Valley Property & Casualty Insurance Co.
- Warner Insurance Co.
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