AM Best downgrades Utica First's credit and financial strength ratings
By Navneeta Nandan
July 18 - (The Insurer) - AM Best has downgraded Utica First Insurance Company's financial strength and long-term issuer credit ratings in response to deteriorating operating performance driven by market conditions, social inflation and weather-related events.
The rating agency downgraded Utica First's financial strength rating to A-minus from A and its long-term issuer credit rating to a-minus from a.
Economic and environmental factors have caused underwriting losses in each of the past five years and pre-tax operating losses in three of the past five years, leading to negative total return metrics, AM Best said.
AM Best revised the outlook of Utica First's credit ratings to stable from negative, citing its very strong balance sheet, prudent investment portfolio and strong liquidity measures.
Utica First has implemented numerous underwriting and rate actions to combat the decline in results, AM Best said. As a result, operating metrics are expected to stabilise and remain in line with the marginal assessment.
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