OKLAHOMA CITY - Union Mutual Insurance Company, chartered to do business in Oklahoma 81 years ago, recently received a Financial Stability Rating (FSR) of “A” (exceptional) from a financial analysis firm that specializes in evaluating the financial stability of regional and specialty insurers.
The rating is assigned to insurers who are deemed to possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss, and loss adjustment expense reserves and realistic pricing.
FSRs summarize Demotech, Inc.’s, opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners.
Since 1989, FSRs of “A” or better have been accepted by the major participants in the secondary mortgage marketplace.
Union Mutual Insurance Co. was chartered in 1938 to write property and casualty insurance in Oklahoma.
The company writes insurance throughout this state via almost 300 agency locations. Those include Lawton, Hobart, Mountain View, Duncan, Comanche, Waurika, Walters, Grandfield, Cyril, Cement, Rush Springs, Marlow, Temple, Altus, Elgin, Eldorado, Frederick, Carnegie, and Ringling, according to company ledgers.
Demotech, based in Columbus, Ohio, has served the insurance industry since 1985 by assigning Financial Stability Ratings for property and casualty insurers and title underwriters. FSRs are an indicator of financial stability, providing an objective baseline of the future solvency of an insurer.