A.M. Best Revises Outlooks to Stable for Unified Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Unified Life Insurance Company (Unified Life) (Dallas, TX).

The revised outlooks reflect A.M. Best’s belief that Unified Life may be challenged to achieve longer-term expectations regarding profitable premium growth. Additionally, A.M. Best would like to see the company continue to grow on both a top- and bottom-line basis, and further enhance its absolute level of capital while executing its strategy of acquiring blocks of business and forming joint venture business partnerships. A.M. Best notes that premium income is expected to be substantially impacted by Unified Life’s exit from the short-term medical line of business, which the company was only in for a few years. This line of business had represented a significant increase in premiums during 2016.

The ratings affirmations reflect Unified Life’s continued very good balance sheet strength, including its very good level of risk-adjusted capitalization. Additionally, the company has historically reported operating profitability driven by growth in premiums derived from its acquisition strategy and its joint venture lines of business, and supplemented by a steady stream of net investment income. A.M. Best notes that, due to the company’s numerous block acquisitions, Unified Life’s level of operating profitability remains somewhat volatile, reflecting the impact of statutory/tax accounting methods within the financial statements.

Unified Life current holding of below investment grade securities represents approximately 37% of total-adjusted capital, down moderately relative to prior years. A.M. Best notes that the company’s investment portfolio has demonstrated favorable and sustainable yields while reporting a relatively modest level of realized losses in recent years.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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A.M. Best

Kate Steffanelli, +1-908-439-2200, ext. 5063

Senior Financial Analyst

kate.steffanelli@ambest.com

or

Joseph Zazzera, MBA, +1-908-439-2200, ext. 5797

Director

joseph.zazzera@ambest.com

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best