A.M. Best has downgraded the financial strength rating to “C- (Weak) from B (Fair)” and issuer credit rating to “cc from bb” of United Contractors’ Insurance Company Incorporated A RRG (UCIC), based in Delaware. The outlook for both ratings is negative.
The new ratings have since been withdrawn by the ratings firm due to UCIC managements decision to no longer participate in A.M. Best’s interactive rating process.
The are based on UCIC’s rapid decline in policyholder surplus cause by several large losses over the past two years and its continuing escalating adverse development.
“Other negative factors include an elevated turnover of third-party administrators for claims over the past three years,” said a statement from A.M. Best.
