AM Best withdraws credit ratings from Crusader Insurance Company and Unico American Corporation


OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best downgraded Crusader’s long-term issuer credit rating (long-term ICR) to “b” (marginal) from “bb +” (passable) to C ++ (marginal) from B (fair) Insurance Company (Crusader). AM Best also lowered the long-term ICR to “ccc-” (low) from “b” (marginal) of Crusader’s parent company, Unico American Corporation (Unico). In addition, AM Best has kept the status under review with negative implications for these credit ratings (ratings). At the same time, AM Best has withdrawn these ratings at the company’s request to no longer participate in AM Best’s interactive rating process. Both companies are headquartered in Calabasas, California.

The ratings reflect the strength of Crusader’s balance sheet, which AM Best considers weak, as well as its poor operational performance, limited business profile and marginal management of enterprise risk.

The rating downgrades follow Crusader’s announcement that it has entered into an administrative oversight agreement with the California Department of Insurance (CDI). The supervision agreement was requested by CDI because of its concerns expressed about the financial stability of Crusader and the potential effects on Crusader and its California policyholders of a possible bankruptcy of Unico. The supervision agreement provides, among other things, for the appointment by the CDI of a special examiner to provide oversight and regulatory oversight of Crusader. It also places limits on Crusader’s ability to take certain actions without the prior written consent of the California Insurance Commissioner, the Special Examiner, or the designated representative of the Special Examiner. At this time, Crusader outgoing claim payments should not be limited or delayed. Further, nothing in the agreement between CDI and Crusader should prevent Crusader or Unico from pursuing a sale or restructuring of Crusader subject to regulatory approvals and requirements.

While Crusader maintains sufficient liquidity and its risk-adjusted capital levels remain at the highest level, as measured by Best’s capital adequacy ratio (BCAR), the downgrades reflect the lowered assessment of soundness. of the balance sheet given the limited financial flexibility of the company and the constraints imposed on Crusader by the CDI.

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

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates 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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