The downgrade of UAIC’s Long-Term ICR reflects the company’s continuing deterioration in earnings and risk-adjusted capitalization, as well as the decline in policyholders’ surplus. Over the latest five-year period, UAIC reported cumulative underwriting and operating losses that resulted in negative pre-tax returns on revenue, and combined and operating ratios that compared unfavorably with the non-standard auto composite. Significant reserve strengthening occurred in most of the past five years, related to the personal injury protection (PIP) line in
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
Senior Financial Analyst
Manager, Public Relations
Director, Public Relations