Press Release|Insurance

KBRA Updates Sublimity Insurance Company’s Watch Status to Watch Downgrade

10 Jan 2024   |   New York


KBRA changes the Watch status for the A- Insurance Financial Strength Rating (IFSR) for Sublimity Insurance Company (SIC) from Watch Developing to Watch Downgrade.

The change in the Watch status reflects the continued deterioration in underwriting results and resulting further decline in surplus reported by SIC since early November when the Watch Developing status was assigned. Through the third quarter of 2023, surplus had declined below $13 million, a 17% decline year-to-date. On October 24, 2023, parent company United Heritage Financial Group announced realignment efforts for its Property & Casualty (P&C) companies to mitigate risk exposures. At the same time, it announced significant cost reductions for its P&C business and a capital infusion that added $5 million to SIC’s surplus before 12/31/23. KBRA will continue to monitor the company's performance and will seek to resolve or update the Watch Downgrade status upon review of full year results and updated financial forecasts from management.

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A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

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Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002970

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