The Seibels Bruce Group Inc., based in Columbia, S.C., announced that its subsidiary Universal Insurance Company (UIC) has received a 2002 Financial Stability Rating of “A” (Exceptional) from Columbus, Ohio-based Demotech Inc.
The company noted that this level of Financial Stability Rating indicates that the balance sheet for the subsidiary reflects excellent liquidity, an acceptable level of financial leverage as measured by total liabilities to statutory net worth and a balanced portfolio of insurance products.
“We are pleased with the rating Universal received from Demotech,” said Jack Natili, president and chief executive officer of Seibels Bruce. “This excellent rating by a third party should allow Universal Insurance Company’s agents to understand the financial stability of this subsidiary and feel confident conducting business with us.”
“In recent quarters, Universal’s contribution to Seibels Bruce’s revenues has been significant, and our Demotech rating serves as another benchmark by which to measure our financial stability,” said Greg Spray, vice president and general manager of Universal Insurance Company.
Universal Insurance Company is a nonstandard automobile insurer domiciled in North Carolina since 1976. UIC serves approximately 600 independent agencies and 40,000 active insureds in the state of North Carolina with total revenues of $11.7 million as of December 31, 2001, and $5.5 million as of June 30, 2002, which represents 20 percent and 19 percent respectively of Seibels Bruce total revenues.
Recently both the South Carolina and North Carolina insurance departments placed restrictions on Seibels Bruce subsidiary South Carolina Insurance Company (SCIC). The NCDOI applied after the SCDOI issued an Order Imposing Administrative Supervision and Appointing Supervisor. The supervision order was issued as the result of a dispute, which is currently in litigation, regarding a business agreement between the company, SCIC and Seibels subsidiary Consolidated American Insurance Company (CAIC), and Human Dynamics Corporation (HDC) in Arizona and California.