CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 11, 2015 02:08 PM (EDT)
A.M. Best has placed under review with positive implications the financial strength rating (FSR) of A- (Excellent) and the issuer credit rating (ICR) of "a-" of Assurant Inc.'s (Assurant) dental HMO entities. In addition, A.M. Best has placed under review with negative implications the FSR of A- (Excellent) and the ICR of "a-" of Union Security Insurance Company (USIC) (Kansas City, MO) and Union Security Life Insurance Company of New York (USLICNY) (Fayetteville, NY). These entities comprise Assurant's employee benefits companies. (See below for a detailed list of Assurant's dental HMO entities.)
The rating actions for the dental HMO entities follow the announcement that these entities will be acquired by Sun Life Financial Inc. (Sun Life) as part of an agreement to acquire Assurant's employee benefits business for approximately $940 million. As part of the transaction, Sun Life will be acquiring the group insurance business of USIC and USLICNY via reinsurance. USIC and USLICNY are not part of the sale agreement with Sun Life.
The rating actions for USIC and USLICNY reflect the anticipated diminished business profile for these entities post-transaction close. USIC is a leading writer of group disability, dental and life coverages in the small to midsize market, where they also offer one of the largest PPO networks in the United States. A.M. Best notes that the primary business remaining after the transaction is completed will be a block of run-off, preneed life insurance through independent funeral homes at USIC, and a modest amount of ordinary life and credit insurance business at USLICNY.
The ratings will remain under review pending the transaction's closing, which is expected in the first quarter of 2016. A.M. Best plans to hold discussions with the respective management teams regarding capital planning and a review of its strategic plans during this time. The transaction is subject to approval by state insurance departments and other U.S. and Canadian regulators.
The FSR of A- (Excellent) and the ICR of "a-" have been placed under review with positive implications for the following life/health subsidiaries (dental HMO's) of Assurant, Inc.:
The FSR of A- (Excellent) and the ICRs of "a-" have been placed under review with negative implications for the following life/health subsidiaries of Assurant, Inc.:
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.
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