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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 09, 2019 01:39 PM (EDT)
AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of United Insurance Company (UIC) (Cayman Islands) and its subsidiary, United Re (Europe) S.A. (Luxembourg). UIC has entered into a definitive agreement to acquire and assign to a commonly owned entity, the acquisition target, in a transaction that has not been announced publically, and is subject to regulatory approval.
The under review status with negative implications reflects AM Best’s concerns that the transaction has put pressure on UIC’s capital strength and liquidity position. UIC’s ratings will remain under review with negative implications until the transaction closes, and AM Best is able to adequately analyze the effects of the transaction on UIC’s ratings. AM Best will continue to monitor any interim developments and reassess the group’s capital and liquidity position on Sept. 30, 2019, in conjunction with the expected recapitalization of the group.
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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