Best’s News & Research Service - December 13, 2016 08:15 AM (EST)
A.M. Best Downgrades Credit Ratings of Casualty Underwriters Insurance Company
- December 13, 2016 08:15 AM (EST)
Oldwick //BestWire// - A.M. Best has downgraded the Financial Strength Rating to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating to “bbb-” from “bbb” of Casualty Underwriters Insurance Company (CUIC) (Salt Lake City, UT). The outlooks have been revised to stable from negative.
The rating downgrades are a result of CUIC’s inability to offer its Livestock Risk Protection (LRP) – Lamb program for an undefined period of time due to restrictions by the U.S. Department of Agriculture, which has had a negative impact to the company’s profile. In an effort to diversify its product offerings, CUIC currently is offering an automobile program through a managing general agent. CUIC retains 10 % of this business and continues to cede the remaining 90 % to First Financial Insurance Company Ltd., a non-affiliated, Nevis-based reinsurance company. However, this is not a long-term solution for CUIC. The goal of the company’s management team is to support the livestock industry; this is where its expertise lies. CUIC will continue to develop products to fit this niche market to support production, regardless of the LRP-lamb program’s status.
Partially offsetting rating factors are CUIC’s strong risk-adjusted capital position and experienced management team.
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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