Press Release|Insurance

KBRA Affirms Ratings for US Coastal Property & Casualty Insurance Company and US Coastal Insurance Company

4 Sep 2026   |   New York

Contacts

KBRA affirms the Insurer Financial Strength Ratings (IFSRs) of BBB+ for US Coastal Property and Casualty Insurance Company (USCPC) and BBB for US Coastal Insurance Company (USCIC), both with Stable Outlooks.

Key Credit Considerations

The ratings for both entities reflect their sound risk-adjusted capitalization, conservative and high credit quality investment portfolios with limited investment risk, and experienced management team with a focused strategy and strong alignment of interests. USCPC has demonstrated improving profitability, reporting $8.7 million of cumulative net income from 2021 through 2025 and underwriting income in four of the last five years. The exception was 2024, when results were impacted by Hurricanes Debby, Helene and Milton. USCPC’s underlying attritional loss ratio has remained below 40%, reflecting strong underwriting and timely claims handling, with positive results continuing through the first half of 2026. USCIC’s profitability has been more volatile, with a cumulative net loss of approximately $1.1 million from 2021 through 2025, primarily reflecting underwriting losses in 2023 and 2024 associated with higher reinsurance costs and lower net premium levels. USCIC returned to underwriting and net profitability in 2025, although results through the first half of 2026 were adversely affected by winter storm activity.

Tempering these strengths are the companies’ geographic and product concentrations and significant exposure to natural catastrophes. USCPC writes close to 90% of its business in Florida, while USCIC is concentrated in New York, New Jersey and Rhode Island. Both companies primarily write homeowners insurance and are exposed to hurricanes as well as wildfires, severe convective storms, and convective and winter storms. These concentrations necessitate significant reliance on quota share and excess-of-loss reinsurance, creating exposure to the availability and pricing of future reinsurance capacity as well as counterparty credit risk. Additionally, management’s plans to grow in existing states carry execution risk.

Rating Sensitivities

Factors that could positively impact the ratings include sustained profitability that outperforms benchmarks through the cycle, organic surplus growth that results in lower surplus note leverage and a consistent trend of profitable expansion outside of Florida for USCPC.

Factors that could negatively impact the ratings include a material deterioration in risk-adjusted capitalization, a material negative variance to forecasts provided to KBRA, an unfavorable change in risk profile, catastrophe events that negatively impact earnings, the inability to obtain appropriate reinsurance and/or a material increase in surplus note leverage.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016739