AM Best has downgraded the Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Rating to “bb-” (Fair) from “bb” (Fair) of Sublimity Insurance Company (SIC) (Salem, OR). The outlook of these Credit Ratings (ratings) is negative. SIC is a subsidiary of United Heritage Financial Group, Inc. which announced on Sept. 4, 2024, that it is pursuing a renewal rights agreements for its personal lines property/casualty business and will no longer write that line of business. As a result, SIC has requested to no longer participate in AM Best’s interactive rating process and AM Best has withdrawn the rating.

The ratings reflect SIC’s balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The rating downgrades reflect weakening in SIC’s balance sheet strength assessment due to a material decline in surplus as of second-quarter 2024. SIC has experienced significant increases in underwriting losses in recent years driven by the headwinds of weather events, higher severity and adverse prior year development coupled with high inflation.

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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