AM Best Upgrades Credit Ratings of United Frontier Mutual Insurance Company

AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of United Frontier Mutual Insurance Company (United Frontier) (Lockport, NY). The outlook of these Credit Ratings (ratings) has been revised to negative from stable.

The ratings reflect United Frontier’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The rating upgrade and revised outlook for United Frontier reflects its integration as a newly added group member of Allegany Insurance Group (Allegany). Earlier in 2023, United Frontier entered into an affiliation agreement with Allegany and more recently, effective Jan. 1, 2024, an inter-company pooling agreement was successfully executed between both members of Allegany: Allegany Co-op Insurance Company and Conemaugh Valley Mutual Insurance Company, as well as United Frontier. The proceedings are expected to enrich Allegany’s product offerings in New York, particularly in the medium-to-large size commercial lines segment.

Additionally, through the agreement, Allegany provides an array of services to United Frontier, including but not limited to marketing, agency support, human resources capabilities, reinsurance support and governance/risk management tools. AM Best expects that the shared resources will evoke additional financial, operational, and strategic capabilities for the group; however, Allegany’s results will continue to be monitored closely over the near-term given the negative pressure on the strong operating performance assessment.

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 pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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