The counterparty credit rating on Unitrin Inc. (Unitrin) reflects the group's strong financial flexibility and liquidity, conservative debt leverage and interest coverage, and strong and improving competitive position driven mostly by its property/casualty (P/C) division. Offsetting these positives are the group's aggressive investment strategy and limited growth prospects in many of its target markets. Unitrin benefits from strong liquidity supported by diverse sources of cash flow primarily from its P/C, life and health, and consumer finance divisions, in addition to its corporate investments. In 2005, Unitrin's subsidiaries upstreamed a total of $409 million in dividends including $300 million in cash and $50 million in Northrop Grumman Corp. (Northrop) common stock, and contributed the Union National Life Insurance Co. subsidiary valued
