AM Best assigns credit ratings to National Unity Insurance Company

OLDWICK, NJ–(BUSINESS WIRE)–AM Best assigned a financial strength rating of B+ (good) and a long-term credit rating of “bbb-” (good) to National Unity Insurance Company (National Unity) (San Antonio, TX). The outlook attributed to these Credit Ratings (ratings) is stable.

The ratings reflect National Unity’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

National Unity is a specialty underwriter specializing in nonresident automobile liability coverage for Mexican residents traveling to the United States for business or pleasure. These policies are short term on average between one to 14 days. The company also offers commercial automobile liability insurance for the transportation of goods in the United States. The majority of commercial activity is conducted within 50 miles of the border. National Unity’s balance sheet strength is supported by the company’s highest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR). However, unfavorable reserve developments were reported due to runoff from non-standard auto reserves and strengthening commercial auto reserves. Sales volatility was felt as the company expanded into non-standard domestic auto lines, but the company exited those lines of business. Since its release, the net technical result has been positive for two consecutive years and has continued into 2021. Risk management capabilities are deemed appropriate and aligned with National Unity’s risk profile.

This press release relates to credit ratings that have been published on AM Best’s website. For all ratings information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit AM Best’s Recent Ratings Activity webpage. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Preliminary Credit Scores, and AM Best’s press releases, please see Guide to the Proper Use of Best Scores and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Justin D. O'Neill