AM BEST DOWNGRADES UNIVERSAL NORTH AMERICA INSURANCE RATINGS

AM Best has downgraded the long-term Issuer credit rating of Universal North America Insurance Company to bbb from bbb+ and assigned a negative outlook. At the same time Best affirmed the US insurer’s financial strength rating of B++ but revised the outlook of the FSR to negative from stable. The rating downgrade and negative outlook reflect “significant volatility” in underwriting performance, which has been unfavourably impacted by elevated weather activity, Best said. While the company has implemented initiatives to improve performance - such as rate increases, more aggressive agency management, enhancement of underwriting guidelines and refinements to underwriting criteria - results remain volatile, the ratings agent said.