Standard & Poor's has lowered its insurer financial strength ratings on Unionamerica Insurance from BBB to BB+.

Ratings have also been withdrawn and removed from Creditwatch at the request of Unionamerica, leaving the company no longer subject to continuous surveillance.

Standard & Poor's expects its ultimate parent, St Paul, will ensure an orderly run-off of Unionamerica's obligations.

The rating agency said the lack of any non-cancellable explicit form of long-term support between St Paul and Unionamerica created some uncertainty surrounding Unionamerica's ability to meet its future obligations.