S&P Revises USI Outlook to Positive

NU Online News Service, Feb. 24, 2:59 p.m. EST

Standard & Poor’s Ratings Services revised its outlook for insurance broker USI Holdings Corp. from stable to positive while affirming the firm’s counterparty credit rating of “B-.”

In a statement, Julie Herman, S&P’s credit analyst says, “The outlook revision to positive is based on our expectation that USI is in a position to display tangible organic revenue improvements and earnings momentum over the coming year.

“We believe this improvement will stem from a combination of realized benefits from structural improvements in the company's sales tactics and operational platforms that the company has undertaken over the past three years as well as stabilized rates and exposures in both the company’s property and casualty and employee benefits markets,” she says.

Herman says the company began showing improvement last year and reversed its negative organic growth to flat for the first time since 2007. The reasons for the improvement were “partly because of favorable new business and retention trends.”

Organic growth is expected to be in the low single digits for 2012 as a result of internal business improvements and the changing direction of premium pricing in the insurance market place, S&P says.

USI is also expected to see margin improvements as it “continues to focus on synergies and expense savings,” according to S&P.

S&P went on to say that it would consider raising USI’s rating over the next 12 months so long as it continues to display financial improvements.


Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Agent & Broker Insider eNewsletter

Proven success tips and essential information to help agents and brokers grow their practice – FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.