OLDWICK: Global rating agency AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of Crusader Insurance Company.
Additionally, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of “bb” of Crusader’s parent company, Unico American Corporation (Unico). Both companies are domiciled in Calabasas, CA.
The negative outlooks capture AM Best’s concerns with Crusader’s declining underwriting performance, the company’s overall capitalization and the execution risk associated with implementing strategic operating changes to address these conditions.
The ratings reflect Crusader’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The rating affirmations are supported by the company’s historically supportive risk-adjusted capitalization, its regional market presence and the financial flexibility of Unico.