OLDWICK, N.J.--(BUSINESS WIRE)--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 (United) (Cayman Islands) and its subsidiary, United Re (Europe) S.A. (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect United’s adequate capitalization, strong strategic relationship with its insureds and its market presence as an alternative risk capacity vehicle. Partially offsetting these positive factors are variable operating results over a five-year period, which are due to United’s excess exposure attaching over the underlying captive retentions, coupled with high ceded leverage relative to its surplus position.
United’s partnership with large global companies provides a diverse book of coverages with good geographic spread of risk. The company has developed client-specific risk management programs across a variety of exposures, as well as ongoing benefits from the risk management programs of its member captives. Management has indicated it will carry out expansion initiatives for its current programs in a judicious manner, as well as offer reinsurance programs that meet its stringent underwriting criteria.
On Sept. 19, 2016, following the approval of the Cayman Island Monetary Authority, United’s outstanding shares were acquired by United Holding Company, a newly formed entity, and its ultimate beneficiaries, consisting of individuals and closely held corporations.
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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