DUFF & PHELPS: ULICO CASUALTY COMPANY ULICO INDEMNITY COMPANY CLAIMS PAYING ABILITY RATED 'A'
CHICAGO, June 14 /PRNewswire/ -- Duff & Phelps Credit Rating Company has reaffirmed the `A' (Single-A) claims paying ability rating of the Ulico Casualty Company (UCC). Ulico Indemnity Company (UIC) has also been assigned a `A' (Single-A) claims paying ability rating based on the company's participation in a recently created reinsurance pooling agreement with UCC. Ulico Casualty Company is a Delaware domiciled property-casualty insurance company that specializes in offering fiduciary liability coverage for trustees of Taft-Hartley benefit plans, and professional liability insurance for union officials. The company reported admitted assets of $124.0 million and policyholders' surplus of $51.8 million at yearend 1992. The company's ultimate owner is ULLICO Inc., a non-public holding company owned by labor organizations. UCC's ownership is currently split between two ULLICO Inc. subsidiaries, The Union Labor Life Insurance Company (51 percent) and Ulico Holding Company, Inc. (49 percent). It is anticipated that UCC will be a wholly owned subsidiary of Ulico Holding Company by the end of 1993. Ulico Holding Company also owns 100 percent of UIC. Ulico Indemnity Company is an Arkansas domiciled property-casualty insurer which commenced business in 1992. UIC's admitted assets at yearend 1992 were $38.0 million and policyholders' surplus was $15.0 million. The company was formed to serve as an excess and surplus lines sister organization to UCC. An intercompany reinsurance pooling agreement was entered into on October 1, 1992, between UCC and UIC in which 75 percent of the pool's written premium is assumed by UCC and 25 percent is assumed by UIC. UIC also assumed 25 percent of UCC's loss reserves at that date. Historically, operating results for the group have been very strong. The consolidated entity reported a net operating gain of $9.2 million on premium volume of $29.4 million in 1992. The combined ratio has averaged 87 percent for the five year period 1988-1992. Although underwriting results and operating profitability have been strong, surplus growth has been minimal as all profits for the last five years were paid out in dividends. -0- 6/14/93 /CONTACT: James B. Auden, CFA, of Duff & Phelps, 312-368-3146/
CO: Ulico Casualty Company; Ulico Indemnity Company ST: IN: INS SU: RTG
LR -- NY064 -- 1624 06/14/93 11:58 EDT
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|Date:||Jun 14, 1993|
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