Best’s News & Research Service - August 14, 2024 10:12 AM (EDT)
AM Best Affirms Credit Ratings of Centurion Casualty Company
- August 14, 2024 10:12 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Centurion Casualty Company (Centurion Casualty) (Omaha, NE). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Centurion Casualty’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and very strong enterprise risk management (ERM). In addition, the ratings include the ability and willingness of the financially strong parent organization, UnitedHealth Group Incorporated (UnitedHealth Group), to support Centurion Casualty.
Centurion Casualty offers travel protection products, including trip cancellation and medical coverage and its products are branded as UnitedHealthcare Global Safe Trip. The company is in start-up mode with minimal net premiums written in 2023 and 2024. Premiums growth is expected to accelerate during the next five years as product sales increase. While Centurion Casualty has reported nominal losses, operating results are expected to improve and be profitable as the company grows and operations reach scale. Centurion Casualty’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), was at the strongest level for 2023. However, as Centurion Casualty premium increases, the BCAR will decline. AM Best expects the BCAR for Centurion Casualty to be managed to the strong range, similar to UnitedHealth Group’s core health insurance operations. Earnings are expected to be retained and be accretive to capital. Additionally, AM Best expects UnitedHealth Group to provide capital support if necessary.
Centurion Casualty is fully integrated within UnitedHealth Group’s ERM program, which AM Best has assessed at the very strong level and considers to be very mature and high functioning. The company performs advanced stress and scenario testing, solvency assessment and economic capital modeling. The program is embedded within the company and is utilized in operational management of its business and strategic planning.
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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.