AM Best revises outlook to negative for Journey Insurance Company

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best revised the outlook from stable to negative and confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of Journey Insurance Company (Journey) (St Petersburg, FL).

The ratings reflect the strength of Journey’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, limited business profile and proper management of business risks.

Journey is majority owned by United Insurance Holdings Corp. (UIHC) [NASDAQ: UIHC]. The overall assessment of the strength of the company‘s balance sheet includes an assessment of the impact of the ultimate parent company, and although it is currently considered neutral, the UIHC reported significant erosion of equity in 2020 and since the start of 2021, mainly due to catastrophic claims. The negative outlook reflects the observed deterioration in the consolidated financial position of the UIHC and its risk-adjusted capitalization, as measured by the Best Solvency Ratio (BCAR), which weighs on the assessment of the overall strength of the balance sheet. by Journey. Management has presented short-term plans to stabilize the operational performance of the consolidated group and curb further erosion of capital.

Journey was established in 2018 to take advantage of market opportunities in Florida, Texas, and South Carolina, particularly in the coverage of commercial properties. The assessment of the strength of the Company’s balance sheet reflects the injection of significant capital intended to support growth with respect to underwriting, credit and investment risks. AM Best will monitor the execution of short-term plans communicated by management and their impact on alleviating pressure on the strength of Journey’s balance sheet.

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 the publication of each of the individual ratings referenced in this publication, please see AM Best Recent rating activity Web page. For more information regarding the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper 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 www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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