Best’s News & Research Service - January 17, 2019 09:36 AM (EST)
AM Best Downgrades Credit Ratings of Crusader Insurance Company
- January 17, 2019 09:36 AM (EST)
Oldwick //BestWire// - AM Best has downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “a-” of Crusader Insurance Company (Crusader). The outlook of the FSR has been revised to stable from negative while the outlook of the Long-Term ICR remains negative. Concurrently, AM Best has downgraded the Long-Term ICR to “bb+” from “bbb-” of Crusader’s parent company, Unico American Corporation (Unico) [NASDAQ: UNAM]. The outlook of this Credit Rating (rating) remains negative. All companies are headquartered in Calabasas, CA.
The ratings reflect Crusader’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The rating downgrades reflect a revision in AM Best’s assessment of the company’s operating performance to adequate from strong. This action is in response to adverse trends in operating performance that began in the second half of 2016. Multiple operating measures, such as the combined and operating ratios, along with return measures, lag behind other companies in the commercial casualty composite assessed as having a strong operating performance. Crusader’s management has taken steps to improve performance, including implementing underwriting actions, rate adjustments, restricting coverage provisions, and enhancing the competencies of internal staff. While the most recent operating performance captures a level of improvement, there remains a level of execution risk inherent in Crusader returning operational results to historical levels.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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