A.M. Best Assigns Ratings to United National Casualty Insurance Company

Proquest LLC

A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to United National Casualty Insurance Company (United) (Mt. Vernon, IN).

The outlook assigned to both ratings is stable.

The assigned ratings reflect United's adequate capitalization, management's history of operations as a managing general agent underwriting multiple peril crop insurance since 2007, as well as the benefits associated with being owned by CGB Enterprises, Inc., an agricultural centric holding company, focusing on grain trading, fertilizer sales, logistics and financial services.

Somewhat offsetting these positive rating factors are the execution risks associated with starting up a stand-alone insurance company serving as a fronting company through its sister managing general agency, as well as operational risks associated with the agricultural marketplace where government program changes and crop prices or weather events could affect business plans. The outlook reflects A.M. Best's view that business plans are reasonable given management's operating assumptions and the financial support of CGB Enterprises, Inc.

United was sold to CGB Enterprises, Inc. on December 31, 2013. Plans call for changing the name of United to CGB Insurance Company on July 1.

While United is well positioned at its current rating level, negative rating actions could occur if its planned financial results materially deviate from its projections, and/or risk-adjusted capitalization were to decline below an acceptable level required by A.M. Best. In addition, excessive growth in premiums and material changes in structure or management also could result in negative rating actions.