Item 8.01. Other Events.

On January 30, 2020, AM Best Company ("AM Best") affirmed the Financial Strength Rating (FSR) of B++ (Good) and downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "bbb" from "bbb+" of Crusader Insurance Company ("Crusader"). The outlook of the FSR of Crusader remains stable while the outlook of the Long-Term ICR of Crusader has been revised to stable from negative. Crusader is a wholly owned subsidiary of Unico American Corporation.

The ratings reflect Crusader's balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The downgrade of the Long-Term ICR reflects a revision in AM Best's assessment of Crusader's operating performance to marginal from adequate. According to AM Best, (i) the downgrades consider a material decline in Crusader's operating performance, resulting from sub-par underwriting results in a relatively compact time frame, (ii) Crusader's adverse performance has been amplified by increased frequency and severity of apartment building insurance related claims, (iii) multiple operating metrics of Crusader trail the commercial casualty composite on a five-year and 10-year basis, and (iv) the consequential business changes being implemented to address these conditions lead to significant execution risk in returning Crusader's operational results to historical levels.

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