H Best Ratings declining United Automobile Insurance Group

 

Saturday, Mar 14,2009, 4:00:20 PM   Click:

Copyright: h Best Company, Inc.
Source: BestWire
Wordcount: 182

H Best Co. has downgraded the financial strength rating of C (low) from B-(Fair) and the issuer credit rating "CCC" from "BB-" for automobile insurance of United Group (United Auto) and its main member, the Automobile Insurance Company United (both of Miami Gardens, FL). The outlook for all ratings has been revised from stable to negative.

These rating actions reflect the sharp decline in the United Auto risk-based capitalization following significant reserve strengthening actions in 2008 that were related to an accident, before 2006, and years, mostly in its personal injury protection (PIP ) online business. In addition, United Auto maintains high underwriting and investment leverage, which also contributed to the deterioration of its risk-adjusted capital. The negative outlook reflects hours better than the interest capitalization deteriorate in May if United Auto's operating performance does not improve in the short term.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

The main methods used in the determination of these opinions, including the methodologies and other factors, may have been taken into consideration, can be found at http://www.ambest.com/ratings/methodology.

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