The United Contractors Insurance Company, a risk retention group based in Delaware, has been liquidated.
The RRG provided liability insurance coverage for its members in the state. The Liquidation and Injunction Order was entered in August.
In April, A.M. Best downgraded the financial strength rating of the firm to “C- (Weak)” from “B (Fair)” and its issuer credit rating to “cc” from “bb”. It subsequently withdrew the ratings at United Contractors Insurance Company's request.
The rating agency cited the rapid decline in policyholder surplus as the reason for the downgrade.
The fall in surplus was caused by several large losses over a period of two years. Policyholder surplus for the company was $16.2 million in 2009. At the end of 2012, the surplus had fallen to $2.1 million.
