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.
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