OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has upgraded the financial strength rating to A
(Excellent) from A- (Excellent) and issuer credit rating to “a” from
“a-” of Universal Underwriters Life Insurance Company(UULIC)
(Overland Park, KS). The outlook for both ratings is stable.
The ratings of UULIC reflect its role and the reinsurance support
provided within Zurich Insurance Group Ltd. (ZIG), to support its
U.S. expansion while targeting the highly competitive affluent
marketplace UULIC operates in. In addition to affluent markets, UULIC
also provides the administration infrastructure and support in the
corporate market for group benefits products.
Offsetting these strengths is the significant decline in capitalization.
While UULIC remains adequately capitalized, it had been over capitalized
for its risk profile and capital was recently re-deployed within the ZIG
organization. Other offsetting factors include a declining earnings
trend and the execution risk associated with the continued development
and implementation of its new business profile.
UULIC is well positioned at its current rating level for the foreseeable
future. Factors that may lead to future negative rating actions include
a change in support from ZIG, a material decline in capitalization or
risk-adjusted capitalization or earnings trends.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include:
“Understanding BCAR for Life/Health Insurers” and “Risk Management and
the Rating Process for Insurance Companies.” Best’s Credit Rating
Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.Louis SavareseSenior Financial
Analyst(908) 439-2200, ext. email@example.comRachelle
MorrowSenior Manager, Public Relations(908)
439-2200, ext. firstname.lastname@example.orgWilliam
PargeansAssistant Vice President(908)
439-2200, ext. email@example.comJim
PeavyAssistant Vice President, Public Relations(908)
439-2200, ext. firstname.lastname@example.org
Source: A.M. Best Co.