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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