AM Best revised the outlook from stable to negative and affirmed the financial strength rating (FSR) of A (Excellent) and the long-term issuer credit rating (Long-term ICR) of “a” (Excellent) of the subsidiaries insurance companies and affiliated insurance companies of
Kemper P&C’s ratings reflect the strength of its balance sheet, which AM Best describes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Kemper L&H’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.
Regarding the parent company, AM Best notes that
The negative rating outlook for Kemper P&C—the main scoring unit of the group—and for
The sharp deterioration in underwriting performance was underpinned by a sharp increase in the severity of claims in the motor business, which accounts for approximately 95% of Kemper P&C’s premium volume, largely reflecting significant chain issues. supply, labor shortages and inflationary pressures. The motor business also experienced higher claims costs, as well as higher claims frequency, especially in the second half of 2021. Kemper L&H reported a positive net profit of
The negative outlook for
The negative outlook for Kemper L&H primarily reflects the significantly smaller scale of this operation within the organization, and AM Best’s view that its credit profile is therefore a function of its intrinsic strength and that of its P&C insurance affiliate and holding company.
A return to enhanced profitability and improved capital strength for
The FSR of A (Excellent) and the long-term KPIs of “a” (Excellent) have been confirmed with a revised negative to stable outlook for members of the
-
Trinity Universal Insurance Company -
Alpha P&C Insurance Company -
Capitol County Mutual Fire Insurance Company -
Charter Indemnity Company -
Financial Compensation Society -
Infinity Insurance Company -
Infinity Assurance Insurance Company -
Infinity Car Insurance Company -
Infinity Property and Casualty Insurance Company -
Infinity Indemnity Insurance Company -
Infinity Preferred Insurance Company -
Infinity Safeguard Insurance Company -
Infinity Security Insurance Company -
Infinity Select Insurance Company -
Infinity Standard Insurance Company -
Infinity County Mutual Insurance Company -
Kemper Independence Insurance Company -
Merastar Insurance Company -
Fire Savings Mutual -
Kemper Financial Compensation Society -
Former reliable accident insurance company -
Answer insurance company -
Answer Worldwide Direct Auto Insurance Company -
Response Global Insurance Company -
National Union Fire Insurance Company -
United Casualty Insurance Company of America -
Unitrin Advantage Insurance Company -
Unitrin Home and Auto Insurance Company -
Unitrin County Mutual Insurance Company -
Unitrin Direct Insurance Company -
Unitrin Direct Property & Casualty Company -
Unitrin Preferred Insurance Company -
Unitrin Safeguard Insurance Company -
Valley Damage Insurance Company -
Warner Insurance Company
The FSR of A (Excellent) and the long-term KPIs of “a” (Excellent) have been confirmed with a revised outlook from negative to stable for members of
-
United Assurance Company of America -
Life Savings Mutual -
the
Reliable life insurance company -
National Union Life Insurance Company -
National Reserve Insurance Company
The following long-term IR has been confirmed, with the outlook revised from stable to negative:
Kemper Corporation—
— “bbb” (good) on
— “bbb” (good) on
The following indicative long-term IRs have been confirmed with the outlook revised to negative from stable for shelf check-in:
Kemper Corporation—
— “bbb” (good) on senior unsecured debt
— “bbb-” (Good) on subordinated debt
— “bb+” (fair) on preferred shares
The following long-term IR has been confirmed, with an outlook revised from stable to negative:
Infinity Property and Casualty Corporation—
— “bbb” (good) on
This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit assessments, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at
Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
src=”https://cts.businesswire.com/ct/CT?id=bwnewssty=20220202006031r1sid=acqr8distro=nxlang=en” style=”width:0;height:0″ />
Show source version on businesswire.com: https://www.businesswire.com/news/home/20220202006031/en/
Senior Financial Analyst
+1 908 439 2200 ext. 5327
[email protected]
senior director
+1 908 439 2200 ext. 5810
[email protected]
Manager, Public Relations
+1 908 439 2200 ext. 5159
[email protected]
Director, Communications
+1 908 439 2200 ext. 5644
[email protected]
Source: AM Best