Press Release|Insurance

KBRA Places the IFSR of Unique Insurance Company on Watch Developing

3 May 2023   |   New York

Contacts

KBRA places on Watch Developing the BBB insurance financial strength rating (IFSR) of Unique Insurance Company.

The Watch Developing reflects the company's deteriorated financial position at end-2022 and subsequent placement on a Capital Action Plan by the Illinois Department of Insurance. Unique Insurance Company's RBC ratio fell below 300% (from 304.6% in 2021 to 223.1% in 2022) and the company’s combined ratio exceeded 120% (117.0% in 2021 to 141.3% in 2022).

The Watch Developing could result in a rating downgrade if upon review of the approved Capital Action Plan KBRA believes that the company's financial position no longer is supportive of its current rating level.

The rating could be affirmed if KBRA believes that the Capital Action Plan will bring the company's financial position in line with its current rating level over the medium term.

To access rating and relevant documents, click here.

Disclosures

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 www.kbra.com.

About KBRA

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.

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