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 challenging and limited growth prospects in its target markets. Unitrin benefits from strong liquidity through diversified sources of cash flow from its P/C, life and health, and consumer finance divisions, in addition to its corporate investments. In 2006, Unitrin's subsidiaries upstreamed a total of $222 million in cash dividends. In 2005, the company upstreamed dividends including $300 million in cash, $50 million in Northrop Grumman Corp. (Northrop) common stock, and the ownership of the Union
