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 Concurrently, A.M. Best has withdrawn the ratings at the company’s request to no longer participate in A.M. Best’s interactive rating process.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

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A.M. Best Co.
Brian Virostek
Financial Analyst
908-439-2200, ext. 5531
brian.virostek@ambest.com
or
Jeffrey Lane
Managing Senior Financial Analyst
908-439-2200, ext. 5567
jeffrey.lane@ambest.com
or
Rachelle Morrow
Senior Manager, Public Relations
908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best Co.