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A.M. Best Affirms Ratings of Crusader Insurance Company and Unico American Corporation

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A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) of “a-” of Crusader Insurance Company (Crusader). Additionally, A.M. Best has affirmed the ICR of “bbb-” of Crusader’s parent company, Unico American Corporation (Unico) [NASDAQ:UNAM]. The outlook for all ratings is stable. Both companies are domiciled in Woodland Hills, CA.

The rating affirmations of Crusader reflect its profitable operating and underwriting performance and its excellent level of risk-adjusted capitalization. In addition, the ratings recognize the financial flexibility afforded through its publicly traded parent, Unico.

Offsetting these strengths are Crusader’s geographic concentration of risk in California and its limited business profile, which subjects the company to competitive market pressures and a challenging legislative and regulatory landscape. Additionally, Crusader’s surplus is exposed to fire following earthquakes, although its reinsurance program reduces its net exposure to a reasonable level.

While the ratings for Crusader are stable, future positive rating actions may result from continued strong underwriting and operating performance. However, negative rating actions could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Best’s expectations.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at

Key insurance criteria reports utilized:

o Catastrophe Analysis in A.M. Best Ratings

o Insurance Holding Company and Debt Ratings

o Risk Management and the Rating Process for Insurance Companies

o The Treatment of Terrorism Risk in the Rating Evaluation

o Understanding BCAR for Property/Casualty Insurers

o Understanding Universal BCAR

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit

Copyright (c) 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

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