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AM Best Revises Issuer Credit Rating Outlook to Positive for United National Life Insurance Company of America


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.

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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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