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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 17, 2005 12:00 AM (EDT)
A.M. Best Co. has placed the financial strength rating (FSR) of B++ (Very Good) of Utica National Life Insurance Company (UNL) (Utica, NY) under review with negative implications.
A.M. Best has also placed the FSRs of B+ (Very Good) of Inviva, Inc.'s two life insurance operations, The American Life Insurance Company of New York (New York, NY) and Jefferson National Life Insurance Company (Dallas, TX) under review with negative implications. These rating actions follow the announcement that Inviva, a privately owned insurance holding company, has reached a definitive agreement to acquire UNL from Utica National Insurance Group (Utica, NY).
The under review with negative implications recognizes UNL's proposed sale to a lower rated organization. When the acquisition is completed and if UNL remains an ongoing entity within Inviva, its rating will be downgraded.
While A.M. Best recognizes that this transaction may add needed scale to Inviva's life insurance operations, A.M. Best remains concerned with the high level of financial leverage and intangibles already on its balance sheet. Inviva's life insurance companies' ratings will remain under review as A.M. Best monitors Inviva's efforts to raise new equity capital. As part of the review, A.M. Best will evaluate the form of the new capital and determine the impact on overall
leverage in the organization.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit Best's Life/Health Rating Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.