AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” (Fair) of Universal North America Insurance Company (UNAIC) based in Arlington, Texas.
The Credit Ratings (ratings) reflect UNAIC’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The ratings have been under review with negative implications since October 2023, initially due to a significant decline in policyholder surplus as the result of weather events in that year. Additionally, UNAIC’s ratings were downgraded to the current rating levels, with the under review with negative implications status maintained, on Feb. 12, 2025, following the executed stock purchase agreement, effective Jan. 31, 2025, which included the sale of UNAIC’s holding company, Universal Insurance Holdings of North America, and an affiliated managing general agent.
Management has requested additional time to further develop its business plan and capital management strategy. The ratings will remain under review with negative implications until AM Best can fully assess UNAIC’s business plan and prospective capital management strategy under its new ownership structure.
The negative implications point to financial-strength uncertainty at the new intermediate holding company, 5B Alliance, LLC, and the ultimate parent, which is an individual entity.
Source: AM Best
Topics AM Best
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