A.M. Best Revises Outlook to Stable for All Ratings of Unique Insurance Company
<p><location value="LU/us.nj.oldick" idsrc="xmltag.org">OLDWICK, N.J.</location>--(BUSINESS WIRE)-- <b><org>A.M. Best Co.</org></b> has revised the outlook to stable from positive, downgraded the issuer credit rating to “bb” from “bb+” and affirmed the financial strength rating of B (Fair) of <b><org>Unique Insurance Company</org></b> (Unique) (<location value="LU/us.il.chicgo" idsrc="xmltag.org">Chicago, IL</location>). </p><p> The revised outlook and downgrading of the ICR are based on Unique’s recent contribution of <money>$2 million</money> to help with the start-up of a sister company, <org>Stonegate Insurance Company</org>, which has been formed to primarily underwrite higher limit standard auto insurance business in <location value="LS/us.il" idsrc="xmltag.org">Illinois</location>. This is in contrast to Unique’s book of business, which is primarily composed of non-standard auto insurance. The capital contribution has somewhat weakened Unique’s previously favorable risk-adjusted capitalization and has resulted in reduced flexibility for Unique in withstanding any potentially significant future loss events that may impair its capital base. </p><p> However, the affirmation of Unique’s FSR is reflective of its risk-adjusted capitalization remaining adequate for the company’s current rating level, as well as Unique’s generally favorable underwriting performance in recent years. </p><p> The principal methodology used in determining these ratings is <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology%2Fbcrm.pdf&esheet=50008256&lan=en-US&anchor=Best%27s+Credit+Rating+Methodology+--+Global+Life+and+Non-Life+Insurance+Edition&index=1&md5=3caeb718ede990a2abc4c300003357eb">Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition</a>, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Understanding BCAR for Property/Casualty Insurers”; “Risk Management and the Rating Process for Insurance Companies”; “Catastrophe Analysis in A.M. Best Ratings”; “Catastrophe Risk Management Incorporated Within the Rating Analysis”; “Natural Catastrophe Stress Test Methodology”; “A.M. Best’s Ratings & the Treatment of Debt”; and “Equity Credit for <org>Hybrid Securities</org>.” Methodologies can be found at <a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2Fratings%2Fmethodology&esheet=50008256&lan=en-US&anchor=www.ambest.com%2Fratings%2Fmethodology&index=2&md5=99b2a7a220f4dfbb60ae4e975334a3c1">www.ambest.com/ratings/methodology</a>. </p><p><b>Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit </b><a href="http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ambest.com%2F&esheet=50008256&lan=en-US&anchor=www.ambest.com&index=3&md5=fd4ef958ff9a493d5e046fa0f098c82d">www.ambest.com</a>. </p><p class="bwalignc"><b>Copyright © 2011 by A.M. Best Company, Inc.</b><b>ALL RIGHTS RESERVED.</b></p><p class="bwalignc"></p><p><img alt="" src="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20110926006230r1&sid=acqr4&distro=nx" /><span class="bwct31415" /></p><p><b><org>A.M. Best Co.</org></b><br /><b><person>Neil Das Gupta</person></b><br /><b>Senior Financial Analyst</b><br /><b>908-439-2200, ext. 5206</b><br /><a href="mailto:[email protected]">[email protected]</a><br /><b>or</b><br /><b><person>Gary Davis</person></b><br /><b>Assistant Vice President</b><br /><b>908-439-2200, ext. 5665</b><br /><a href="mailto:[email protected]">[email protected]</a><br /><b>or</b><br /><b><person>Carole Lovell</person></b><br /><b>Public Relations Associate</b><br /><b>908-439-2200, ext. 5445</b><br /><a href="mailto:[email protected]">[email protected]</a><br /><b>or</b><br /><b><person>Jim Peavy</person></b><br /><b>Assistant Vice President, Public Relations</b><br /><b>908-439-2200, ext. 5644</b><br /><a href="mailto:[email protected]">[email protected]</a></p><p class="bwalignc"></p><p>Source: <org>A.M. Best Co.</org></p>
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