AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Centurion Casualty Company (Centurion Casualty) (Omaha, NE). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Centurion Casualty’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and very strong enterprise risk management (ERM). In addition, the ratings include the ability and willingness of the financially strong parent organization, UnitedHealth Group Incorporated (UnitedHealth Group), to support Centurion Casualty as an indirect property/casualty insurance subsidiary.
Centurion Casualty was acquired as a shell in 2019 with licenses in 48 states and the District of Columbia. The acquisition was made in order for the organization to offer travel protection products on a direct basis. Initial product offerings include trip cancellation and travel medical coverage branded UnitedHealthcare Global SafeTrip.
Although the company’s initial premium revenue is projected to be minimal, more material growth is anticipated over the next five years. Centurion Casualty’s operating results are projected to be favorable and earnings are expected to be retained to grow capital and surplus to support business expansion. Nevertheless, AM Best expects parental support of the risk-adjusted capital needs of Centurion Casualty. Capital contributions totaling $4.9 million have been made over the past few years to fund business development. AM Best anticipates that the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), will be managed within the strong assessment level, similar to UnitedHealth Group’s core health insurance operations. Risk-adjusted and absolute capital are centrally managed on a quarterly basis for all insurance subsidiaries within the UnitedHealth Group enterprise.
As an internal start-up operation, Centurion Casualty is fully integrated with UnitedHealth Group’s ERM program, which AM Best has assessed at the very strong level and considers to be very mature and high-functioning. The company performs advanced stress and scenario testing, solvency assessment and economic capital modeling. The program is embedded within the company and is utilized in operational management of its business and strategic planning.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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