OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has revised the outlook to positive from stable and
affirmed the financial strength rating of B++ (Good) and issuer credit
rating of “bbb+” of Universal Life Insurance Company(Universal
Life) (Hato Rey, PR).
The revised outlook reflects Universal Life’s well-established marketing
presence and brand name recognition in the Puerto Rico insurance
marketplace, the financial commitment of its parent, Universal Group,
Inc., its strong level of risk-adjusted capitalization, as well as its
positive operating earnings trends and consistent premium growth. In
addition, the ratings consider Universal Life’s improved interest
spread, despite the low interest rate environment, and strong market
presence as a well known provider of tax advantaged annuities in Puerto
Rico.
Partially offsetting these positive rating factors is Universal Life’s
geographic concentration risk in an economically challenged Puerto Rico
market and its high interest sensitive product concentration. While the
company does market variable annuities, there is minimal risk to
Universal Life as any benefit guarantees are reinsured.
Key rating factors that may result in positive rating actions include
improvement in Universal Life’s operating results in its ancillary lines
of business, the decrease in its product concentration and maintenance
of high risk-adjusted capitalization. Key rating factors that may result
in negative rating actions include loss of support from its financially
stronger parent, erosion of capital, significant operating losses and
further product concentration.
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
RESERVED.
A.M. Best Co.
Eva Sverdlova, 908-439-2200, ext. 5733
Senior
Financial Analyst
eva.sverdlova@ambest.com
or
William
Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
william.pargeans@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public
Relations
rachelle.morrow@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President,
Public Relations
james.peavy@ambest.com
Source: A.M. Best Co.
| Copyright: | Copyright Business Wire 2012 |
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