AM Best Removes Under Review with Developing Implications, Affirms Credit Ratings of Certain CUNA Mutual Holding Company Life Insurance Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has removed the under review with developing implications and affirmed the Financial Strength Ratings (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of American Memorial Life Insurance Company (AMLIC) (Rapid City, SD) and Assurant Life of Canada (ALOC) (Toronto, Canada). Concurrently AM Best has removed the under review with developing implications and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb” (Good) of Union Security Insurance Company (USIC) (Topeka, KS). The outlook assigned to these Credit Ratings (ratings) is stable.

The removal of the under review with developing implications status reflects the closing of CUNA Mutual Holding Company’s (CUNA Mutual) acquisition of the companies from their former parent, Assurant, Inc. The companies were placed under review with developing implications on Oct. 30, 2020, following Assurant’s announcement of the potential sale of the three entities. On March 9, 2021, AM Best maintained the under review with developing implications status on the three companies following Assurant’s announcement that it entered into a definitive agreement to sell AMLIC, ALOC, and USIC to CUNA Mutual.

The ratings of AMLIC reflects its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings of ALOC reflects its balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of USIC reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The stable outlooks for AMLIC, ALOC and USIC reflect AM Best’s expectations that the companies will be successfully integrated into CUNA Mutual and that the companies’ rating fundamentals will not materially change in the short term.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Jeffrey Stary
Financial Analyst

+1 908 439 2200, ext. 5689

jeffrey.stary@ambest.com

Robert Raber
Director

+1 908 439 2200, ext. 5696

robert.raber@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best