OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating of B
(Fair) and issuer credit rating (ICR) of “bb+” of Universal Fidelity
LifeInsurance Company (UFLIC) (Oklahoma City, OK). The
outlook for both ratings is stable. Concurrently, A.M. Best has
withdrawn the ratings at the company’s request to no longer participate
in A.M. Best’s interactive rating process.
UFLIC markets primarily third-party administrative (TPA) services
nationally and student accident and life insurance products chiefly in
the south central United States. The company is currently focusing on
partnering with other carriers to market life and Medicare supplement
products, in addition to growing its TPA business.
As its risk business is concentrated in student accident insurance,
UFLIC is exposed to marketing and regulatory risks. A.M. Best believes
the company will be challenged to achieve its short-term financial
projections due to a highly competitive student accident market, which
may experience lower profit margins and possible adverse impact from
health care reform.
A.M. Best notes that UFLIC has recently implemented business improvement
initiatives in order to improve selections in its student accident
business, reduce general and administrative expenses, temper sales of
its capital-intensive single premium whole life product and emphasize
growth in its Employee Retirement Income Security Act TPA revenue.
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. 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.Brian VirostekFinancial Analyst908-439-2200,
LaneManaging Senior Financial Analyst908-439-2200,
MorrowSenior Manager, Public Relations908-439-2200,
PeavyAssistant Vice President, Public Relations908-439-2200,
Source: A.M. Best Co.