A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Crusader Insurance Co.
Additionally, A.M. Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of “bbb-” of Crusader’s parent company, Unico American Corp.
Both companies are headquartered in Calabasas, Calif. The majority of Crusader’s policies are underwritten through an affiliated general agency, Unifax Insurance Systems Inc. Crusader is licensed to transact property/casualty insurance on an admitted basis in Arizona, California, Nevada, Oregon and Washington. It’s programs include apartments and commercial buildings, food, beverage and entertainment, garage and mercantile and transportation.
A.M. Best’s says the negative outlooks capture its concerns with Crusader’s recent declining underwriting performance, as well as the recently implemented management restructuring and the execution risk that comes with strategic operating changes.
The ratings reflect Crusader’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management. The Credit Rating affirmation is supported by company’s solid risk-adjusted capitalization, historically profitable underwriting and operating performance, its regional market presence and the financial flexibility of Unico, according to A.M. Best.
Offsetting these positive rating factors are Crusader’s geographic concentration of risk in California and limited business profile, which subject Crusader to competitive market pressures and a challenging legislative and regulatory landscape, according to A.M. Best.
“Furthermore, while Crusader’s policies exclude coverage for earthquakes, surplus is exposed to fire following an earthquake; however, Crusader’s reinsurance program reduces the company’s net exposure to a reasonable level,” A.M. Best stated.
Topics California Trends AM Best
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