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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - FEBRUARY 04, 2009 12:00 AM (EST)
A.M. Best Co. has affirmed the financial strength ratings of B (Fair) and issuer credit ratings of "bb" of National Foundation Life Insurance Company (NFL) and Freedom Life Insurance Company of America (FLICA), both subsidiaries of the USHEALTH Group, Inc. (USHEALTH). The outlook for all ratings has been revised to negative from stable. All companies are domiciled in Fort Worth, TX.
The revised outlook reflects a sizeable, adverse legal judgment against NFL related to a non-core line of business that will be reflected in its year-end 2008 financials. While reduced, the group's risk-based capital position remains sufficient for its current ratings. USHEALTH is exploring capital-raising alternatives with outside parties, which if successful, would bolster its capital position and provide additional flexibility.
USHEALTH also has shown considerable recent new business growth in its core individual major medical business. A.M. Best notes the individual major medical market has become increasingly competitive in recent years, as larger national competitors with numerous competitive advantages have been more active.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at
Best's Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.