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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 16, 2021 03:19 PM (EDT)
AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to National Unity Insurance Company (National Unity) (San Antonio, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect National Unity’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
National Unity is a niche specialty writer primarily focused on non-resident automobile liability coverage for Mexican residents traveling into the United States for business or pleasure. These policies are short in duration averaging between one to 14 days. The company also offers commercial auto liability coverage for the transportation of goods into the United States. A majority of the commercial business is conducted within a 50-mile radius of the border. National Unity’s balance sheet strength is supported by the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR). However, unfavorable reserve development has been reported due to the runoff of non-standard auto and strengthening of commercial auto reserves. Underwriting volatility was experienced when the company expanded into domestic non-standard auto lines, but the company has exited these lines of business. Since its exit, net underwriting income has been positive for two consecutive years and has continued in 2021. Risk management capabilities are considered appropriate and aligned with National Unity’s risk profile.
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 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.