Disastrous results have seen insurer Unionamerica placed into run-off by its new parent company St Paul.
The move prompted an immediate downgrade in Unionamerica's Standard & Poor's (S&P) credit rating from A (strong) to triple B (good).
In 1999, Unionamerica had around £102m in premium income, but S&P shows the insurer made underwriting losses for the year of £61m.
The vast majority of the insurer's book (85%) came from the US, but around £6m covered UK-based risks.
Standard & Poor's said: “Unionamerica's capitalisation as a going concern, as measured by our capital adequacy model, would be marginal.
“But Standard & Poor's expects St Paul will ensure an orderly run-off and that the interests of the policyholders will continue to be protected.”
Key lines of business for Unionamerica last year included liability, £25m, £7m motor and £14m property.
