Insurance rating agency A.M. Best Co. has upgraded the financial strength rating of certain Kingsway Financial Services Inc. subsidiaries, as well as reaffirming the financial strength rating of its other subsidiaries.

A.M. Best upgraded the financial strength ratings of American Service to “A-” (Excellent), Southern United Fire Insurance Co. to “A-” and U.S. Security to “B+” (Very Good); they were each assigned a stable outlook.

The financial strength ratings of Lincoln General Insurance Co. of “A-”, Universal Casualty Co. “A-”, Kingsway General Insurance Company “B++” (Very Good) and York Fire & Casualty Insurance Co. “B++” were affirmed and were each also assigned a stable outlook.

The financial strength ratings of Jevco Insurance Co. at “A-”, Kingsway Reinsurance (Bermuda) Ltd. at “A-” and American Country Insurance Co. “B+”, were also reaffirmed and were each assigned a negative outlook.

Kingsway Reinsurance Co. of Barbados was assigned an initial financial strength rating of A- with a stable outlook. Previously A.M. Best had placed all of Kingsway’s insurance subsidiary financial strength ratings under review.

A.M. Best also affirmed the issuer credit rating of “bbb-” of Kingsway Financial Services Inc. and assigned an issuer credit rating of “bbb-” to its subsidiary holding company, Kingsway America Inc., for all of the company’s senior indebtedness.

“The strength of the consolidated balance sheet is excellent and continues to improve primarily as a result of improvement in its core property/casualty operating companies,” said A.M. Best. “The ratings reflect Kingsway’s financial flexibility, geographic diversification of risk, experienced management and its niche market leadership position.”

“We are pleased that A.M. Best has recognized the financial strength of our company,” said Bill Star, president and CEO of Mississauga, Ont.-based Kingsway Financial Services. “We are well capitalized and our diversification and dominant niche market positions provide us with a strong foundation on which we can continue to build.”