NOVEMBER 22, 2016 02:38:29 Eastern Standard Time
A.M. Best Withdraws Credit Ratings of United Automobile Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 22, 2016 02:38:29 Eastern Standard Time
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 Florida and to adverse loss reserve development from its Texas operations. Furthermore, the company’s elevated net underwriting leverage, limited product offering and geographic concentration has exposed the company’s policyholders’ surplus to unfavorable judicial actions and regulatory actions.
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.
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