AM Best Downgrades Credit Ratings of Universal Life Insurance Company
BY Business Wire | CORPORATE | 09/12/24 11:17 AM EDTOLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to ?bb+? (Fair) from ?bbb-? (Good) of Universal Life Insurance Company (ULICO) (Guaynabo, PR). In addition, AM Best has revised the outlooks to stable from negative.
The Credit Ratings (ratings) reflect ULICO?s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The rating downgrades reflect the revision in the operating performance assessment to adequate from strong. Operating performance, while consistently profitable, has experienced a declining trend over the past several years, partially related to market conditions and non-recurring items. The results for Q2 2024 reflect improving conditions versus prior year. ULICO continues to reduce the effect of the counterparty risk with Private Bankers Life & Annuity, most recently with the Aug. 9, 2024, court appointment of a receiver assigned to execute ULICO?s judgment but progress has been slow. While ULICO maintains a top market position in Puerto Rico, its business profile is limited by its concentrated product offering and geography. AM Best will continue to monitor the financials of ULICO.
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 Performance Assessments, 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.
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Source: AM Best