AM Best assigns a Long-Term Issue Credit Rating of ‘a-’ (Excellent) to the US$25 million, 7.155 per cent surplus notes issued by United Educators Insurance, a Reciprocal Risk Retention Group (United Educators). The outlook assigned to this credit rating is ‘stable’. Based in Burlington, Vermont, United Educators expects to use the proceeds from the issuance of the surplus notes to support statutory surplus, capital resiliency and operational flexibility. Following the issuance, the company’s financial leverage is expected to remain within AM Best’s guidelines for its current rating. The credit rating agency considers United Educators’ liquidity sufficient to service the debt. The surplus notes, which are due 13 January 2046, are callable by the reciprocal risk retention group after seven years. Any such call may only be made with prior approval from the Vermont Department of Financial Regulation. The notes are subordinate to policyholders, claimant and beneficiary claims, and all other classes of creditors other than surplus notes holders. The Financial Strength Rating of ‘A’ (Excellent) and the Long-Term Issuer Credit Rating of ‘a+’ (Excellent) of United Educators remain unchanged. United Educators currently provides liability insurance and risk management services to more than 1,600 schools, colleges, and universities across the US.
