Washington, D.C. (PRWEB) January 24, 2013
Ullico Inc. President and CEO Edward M. Smith said today the decision to withdraw the rating by A.M. Best from Ullico Casualty Company was a deliberate action taken by the company to reflect its new strategic direction and focus.
Smith said in December, 2012, a team from Ullico Inc. met with representatives from A.M. Best to discuss Ullico’s strategy of transitioning its property and casualty business to a managing general agency (MGA) model, which focuses on underwriting and claims administration for property and casualty products in Ullico’s labor affinity marketplace, and withdrawing the rating from Ullico Casualty Company. As a result of that meeting, a letter asking to withdraw from the rating process was delivered to A.M. Best in early 2013. Consistent with the business strategy, Ullico Casualty Company will not renew existing accounts or write new business in Ullico Casualty Company.
In 2012, Ullico Casualty Group, Inc. entered into long‐term agreements with Alterra America Insurance Company (Alterra America) to provide multiemployer and government fiduciary liability and union liability insurance. Ullico Casualty Group began issuing Alterra America new and renewal policies last week.
“The need for a rating by a ratings agency disappears because of the strategic re-positioning of our property and casualty business. Ullico will focus on what it does best, building upon our unique position in the market. Our underwriting and claims management experience for our labor union customers is unmatched. Our A rated partner carriers will use the expertise and experience of Ullico Casualty Group to provide coverage to union leaders and trustees,” said Smith.
“This is the logical next step in Ullico’s growth and transition as the national resource for labor’s professional liability coverage. In the property and casualty marketplace, we will build on Ullico’s 85 years as a labor-owned insurance carrier, with unique experience and understanding of the insurance needs of labor unions, their leaders, and benefit plan trustees,” Smith said.
Smith said the next step in the strategic reset of the company is coming to an agreement with a carrier on its commercial lines in order to provide Ullico Casualty Group with a fifty-state platform.
“It has long been a goal of Ullico’s to offer its commercial lines products in all fifty states. I am confident we will make that dream a reality soon,” said Smith.
For 85 years, Ullico, the only labor-owned insurance and investment company, has been a proud partner of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees, businesses and investments. The Ullico family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, Inc.; Ullico Investment Company, Inc.; and Ullico Investment Advisors, Inc. For additional information, visit http://www.ullico.com.