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 At the same time, AM Best has withdrawn these ratings because the company has requested to no longer participate in the interactive rating process of AM Best.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.
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