A.M. Best Affirms Credit Ratings of United Insurance Company and United Re (Europe) S.A.
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 21, 2018--A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of United Insurance Company (UIC) (Cayman Islands) and its subsidiary, United Re (Europe) S.A. (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect UIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
UIC’s very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), healthy liquidity, financial flexibility, quality of capital and reinsurance program contribute to A.M. Best’s balance sheet assessment of very strong. UIC’s operating performance has been profitable historically, driven by underwriting performance and investment income in most years. The results have fluctuated over a five-year period as a result of some volatility experienced in UIC’s reinsurance underwriting and investment returns. The company realigned its investment strategy in 2016; healthy investment income was recorded in 2017 and is projected going forward. UIC’s overall operating performance is assessed as adequate.
UIC’s business profile was deemed to be neutral. This company is one of the longest tenured alternative risk vehicles rated by A.M. Best. UIC has an established reputation within the captive insurance market and its risk pooling programs have been its hallmark business since formation. Additionally, the company is currently in the process of expanding its profile by entering the U.S. insurance market.
Furthermore, UIC’s ERM is considered to be appropriate for its overall business risk profile.
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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
+1 908 439 2200, ext. 5326
Steven M. Chirico, CPA
+1 908 439 2200, ext. 5087
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: UNITED STATES LUXEMBOURG EUROPE NORTH AMERICA CARIBBEAN CAYMAN ISLANDS NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 09/21/2018 01:05 PM/DISC: 09/21/2018 01:05 PM