A.M. Best Comments on Ratings of Universal Ins. Co. Unchanged; Withdraws Ratings of Universal Ins. Co. Subsidiaries

A.M. Best Co. has withdrawn the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of the affiliates of Universal Insurance Company (UIC) (Guaynabo, PR), which consist of Eastern America Insurance Company (Guaynabo, PR) and Caribbean Alliance Insurance Company (San Juan, PR) and assigned a category NR-5 (Not Formerly Followed) to the FSR and an “nr” to the ICRs. In addition, A.M. Best has withdrawn the category NR-3 (Rating Procedure Inapplicable) and assigned a category NR-5 (Not Formerly Followed) to Richport Insurance Company (Guaynabo, PR). Concurrently, A.M. Best has withdrawn the FSR of A (Excellent) and ICR of “a” and assigned a category NR-5 (Not Formerly Followed) to the FSR and an “nr” to the ICR of Universal Insurance Group. The rating actions follow confirmation that each affiliate named above was merged into UIC during the second quarter of 2010; and thus, no longer exist.

The FSR of A (Excellent), ICR of “a” and stable outlook of UIC are unchanged. These ratings were last affirmed on June 16, 2010.

The principal methodology used in determining these ratings is http://www.ambest.com/ratings/methodology/bcrm.pdf, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; and “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at http://www.ambest.com/ratings/methodology.