OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlook to positive from stable for the Long-Term Issuer-Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of United National Life Insurance Company of America (UNL) (Glenview, IL). The outlook of the FSR remains stable.
The Credit Ratings (ratings) of UNL reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The positive outlook on UNL’s Long-Term ICR reflect the strengthening in UNL’s level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). This was driven by its operating earnings, which are diversified across its life, accident and health business. Net premium growth of 8% in 2018 was a factor in UNL’s improved operating performance, driven partially by a decreasing combined expense ratio. Net operating income also reflects UNL’s increase in net investment income of 26% compared, with 2017 results. UNL’s premiums contain an element of concentration risk, as approximately 60% of premium is written in its cancer product line and most of its products are targeted toward the senior market. UNL has made strides over the past few years to expand its geographic reach, and it has done so at a measured pace.
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