Home Insurance agency AM Best withdraws credit ratings from Union Security Life Insurance Company of...

AM Best withdraws credit ratings from Union Security Life Insurance Company of New York

9
0

OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best withdrew from the review with developing implications and downgraded the financial strength rating from B + (good) to B ++ (good) and the issuer’s long-term credit rating to “bbb-” (good) from “Bbb” (maid) from Union Security Life Insurance Company of New York (New York, NY). The outlook assigned to these credit ratings (ratings) is negative. At the same time, AM Best has withdrawn these ratings because the company has requested to no longer participate in the interactive rating process of AM Best.

The ratings reflect the strength of Union Security Life Insurance Company of New York’s balance sheet, which AM Best considers adequate, as well as its marginal operating performance, limited business profile and appropriate management of enterprise risk.

The credit rating downgrades reflect the decline in the strategic importance of Union Security Life Insurance Company of New York to its parent company, Assurant Inc., following the sale of its prerequisite businesses to CUNA Mutual Group.

This company, which was previously primarily the New York marketing arm of Assurant Employee Benefits which was sold to Sun Life Financial Inc. in 2016, no longer actively markets a small portion of the financial services business for the Global segment. Assurant Lifestyle. In addition, there is extremely high reinsurance leverage due to the sale of several large blocks of business through reinsurance backed by reinsurance trusts. The absolute level of capital has decreased significantly from historical levels since the end of 2015, when the capital that previously supported the Employee Benefits business has been released.

The negative outlook reflects the profile of the contracting business of Union Security Life Insurance Company of New York, which AM Best considers limited.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

LEAVE A REPLY

Please enter your comment!
Please enter your name here