AM Best Revises Outlooks to Negative for Universal North America Insurance Company; Affirms Credit Ratings of Universal Insurance Company (PR)
The ratings of UNAIC reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings also reflect the implicit support received from UNAIC’s ultimate parent,
The revised outlooks to negative largely reflect the decline in UNAIC’s operating performance in the most recent years, which has placed pressure on AM Best’s current assessment of adequate. While the operating performance has been impacted by recent hurricane activity (2017 and 2018), the negative outlooks also consider the underlying performance, which has been impacted unfavorably by other weather-related losses, such as wildfires in
UNAIC’s balance sheet assessment is supported by its strong level of risk-adjusted capitalization, its conservative investment portfolio, stable loss reserving trends and comprehensive reinsurance program. These positive factors are offset partially by the company’s high underwriting leverage and its significant catastrophe exposure, as evidenced by the weather events in 2017 and 2018. AM Best’s assessment of UNAIC’s business profile reflects the company’s solid geographic spread of risk and range of personal property products. Weather-related events continue to be UNAIC’s primary risk, and part of its ERM program has been centered appropriately around mitigating this exposure through a comprehensive reinsurance program, strategic placement of coverage and strict underwriting guidelines.
The ratings of UIC reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
UIC’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, stable loss reserving trends, and solid liquidity measures that are enhanced by positive operating cash flows. Partially offsetting these positive factors are UIC’s high-ceded leverage and ongoing stockholder dividend payments. The company has produced solid operating earnings over the long term, primarily driven by strong investment earnings, and other income coupled with variable underwriting results. UIC’s business profile reflects the company’s market leader position in the personal auto space in
This press release relates to Credit Ratings that have been published on AM 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 AM 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. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190215005298/en/
Brian O’Larte
Director
+1 908 439 2200, ext. 5138
brian.o'[email protected]
Senior Director
+1 908 439 2200, ext. 5432
[email protected]
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]
Source: AM Best
AM Best Maintains Under Review With Negative Implications Status for National Insurance Company Limited
Seen on TV: 2/15/19
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News