Best’s News & Research Service - June 14, 2017 02:24 PM (EDT)
A.M. Best Assigns Credit Ratings to United National Life Insurance Company of America
- June 14, 2017 02:24 PM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a Financial Strength Rating (FSR) of B++ (Good) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” to United National Life Insurance Company of America (UNL) (Glenview, IL). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating assignment reflects UNL’s strong risk-adjusted capitalization levels and trend of profitability. UNL has operated with consistently favorable operating earnings over the past three years, which has driven upward movement of risk-adjusted capitalization levels over the medium term. While UNL has reported a trend of favorable earnings and risk-adjusted capital, A.M. Best notes that absolute capital and earnings are modest. The core supplement products have produced favorable operating earnings over the past few years.
Offsetting rating factors include a lack of premium growth, business concentration in the supplemental accident & health (A&H) line of business and the evolving risk management program of an affiliated company. UNL’s direct premiums written have remained flat over the past three years and net premiums written have fluctuated. In addition, a sizeable portion of premiums assumed is from an affiliated company, Guarantee Trust Life Insurance Company (GTL). UNL’s business profile is somewhat concentrated in the agency A&H segment and in a select number of states. The company also is exposed to geographic concentration risk as approximately 45% of direct A&H premium is derived from two states and more than 75% is from five states. A.M. Best expects UNL to continue to execute on its business strategy to grow premium through product enhancements and geographic expansion. A.M. Best notes that the company leverages its relationship with GTL for risk governance; however, that program is evolving and the risk management process is being refined.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.