Best’s News & Research Service - February 21, 2020 11:54 AM (EST)
AM Best Removes From Under Review With Negative Implications and Affirms the Credit Ratings of United Life Insurance Company
- February 21, 2020 11:54 AM (EST)
Oldwick //BestWire// - AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of United Life Insurance Company (ULIC) (Cedar Rapids, IA). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings of ULIC reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings are reflective of the strongest level of risk-adjusted capitalization, capital and surplus to liability ratio matched by similarly rated peers and a high quality of capital with no use of surplus notes, other forms of debt, captives or permitted practices that might make the balance sheet less conservative than peers. Additionally, ULIC has had recent success with new product launches and high premium growth.
Offsetting rating factors include marginal profitability with losses in its ordinary life business and spread compression; however, new product launches coupled with premium growth and a changing liability profile should mitigate this going forward.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.