Best’s News & Research Service - August 29, 2024 01:28 PM (EDT)
AM Best Maintains Under Review With Negative Implications Status for Credit Ratings of Universal North America Insurance Company
- August 29, 2024 01:28 PM (EDT)
//BestWire// - AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Universal North America Insurance Company (UNAIC) (Arlington, TX).
These Credit Ratings (ratings) reflect UNAIC’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The ratings were initially placed under review with negative implications on Oct. 11, 2023, following a significant decline in policyholder surplus as the result of weather events in 2023. The status was maintained on Feb. 14, 2024, after UNAIC’s ultimate parent, Universal Group, Inc., entered into a definitive agreement to sell its U.S. operations, including UNAIC’s holding company and its subsidiaries. To date, the transaction has not been finalized. The ratings will remain under until the transaction receives regulatory approval and AM Best can fully analyze the impact of the sale, including the buyer’s capital management strategy and operating plan, as well as financial and operational wherewithal. In the absence of an adequate plan that is supportive of the current assessment, the ratings will likely be downgraded.
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.