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Insurance ratings actions: A.M. Best upgrades Granite Re

S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actions after 5:30 p.m. ET will be included in the following day's roundup.

Multiline

A.M. Best has placed under review with developing implications the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" for the property and casualty subsidiaries and affiliated insurance companies of Kemper Corp.

The affected subsidiaries are Trinity Universal Insurance Co., Alpha Property & Casualty Insurance Co., Capitol County Mutual Fire Insurance Co., Charter Indemnity Co., Financial Indemnity Co., Kemper Independence Insurance Co., Merastar Insurance Co., Mutual Savings Fire Insurance Co., Kemper Financial Indemnity Co., Old Reliable Casualty Co., Response Insurance Co., Response Worldwide Direct Auto Insurance Co., Response Worldwide Insurance Co., Union National Fire Insurance Co., United Casualty Insurance Co. of America, Unitrin Advantage Insurance Co., Unitrin Auto & Home Insurance Co., Unitrin County Mutual Insurance Co., Unitrin Direct Insurance Co., Unitrin Direct Property & Casualty Co., Unitrin Preferred Insurance Co., Unitrin Safeguard Insurance Co., Valley Property & Casualty Insurance Co. and Warner Insurance Co.

A.M. Best also has placed under review with developing implications the financial strength ratings of A- (Excellent) and the long-term issuer credit ratings of "a-" for Kemper's life and health subsidiaries United Insurance Co. of America, Mutual Savings Life Insurance Co., Reliable Life Insurance Co., Union National Life Insurance Co. and Reserve National Insurance Co.

Concurrently, A.M. Best has placed under review with developing implications the long-term issuer credit rating of "bbb-" and the long-term issue credit ratings of Kemper.

The ratings actions follow the announcement that Kemper will acquire Infinity Property and Casualty Corp.

The developing implications status reflects the need for A.M. Best to evaluate Kemper's plans to integrate Infinity Property and Casualty into existing insurance operations, as well as to ensure that risk-adjusted capitalization is maintained at levels in line with its current ratings.

The ratings will remain under review pending the completion of the transaction.

Property and casualty

A.M. Best has upgraded the financial strength rating to A+ (Superior) from A (Excellent) and the long-term issuer credit rating to "aa-" from "a" of Granite Re Inc.

The outlook of the long-term issuer credit rating has been revised to stable from positive, while the outlook of the financial strength rating remains stable.

In addition, A.M. Best has affirmed the financial strength ratings of A+ (Superior) and the long-term issuer credit ratings of "aa-" of Federated Mutual Insurance Co. and its subsidiaries Federated Service Insurance Co. and Federated Reserve Insurance Co.

The outlook of these ratings is stable.

The ratings reflect the group's strongest balance sheet strength, adequate operating performance, favorable business profile and appropriate enterprise risk management, A.M. Best said.

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A.M. Best has also acted on Infinity Property and Casualty after the announcement of its deal with Kemper.

The rating agency has placed under review with negative implications the long-term issuer credit rating of "bbb" of Infinity Property and Casualty, the financial strength rating of A and the long-term issuer credit rating of "a" of its operating subsidiaries.

The affected subsidiaries are Infinity Insurance Co., Infinity Assurance Insurance Co., Infinity Auto Insurance Co., Infinity Casualty Insurance Co., Infinity Indemnity Insurance Co., Infinity Preferred Insurance Co., Infinity Safeguard Insurance Co., Infinity Security Insurance Co., Infinity Select Insurance Co., Infinity Standard Insurance Co. and Infinity County Mutual Insurance Co.

A.M. Best has also placed under review with negative implications the long-term issue credit ratings of Infinity Property and Casualty.

The rating agency said the negative implications are primarily due to the larger, lower-rated Kemper, which will be the surviving entity.