OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of United Life Insurance Company (ULIC), a wholly owned subsidiary of Kuvare US Holdings, Inc. (Kuvare), which is a subsidiary of Kuvare Holdings LP. The outlook assigned to these Credit Ratings (ratings) is stable. ULIC is headquartered in Cedar Rapids, IA.
The ratings reflect ULIC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. As a result of the change in ownership, A.M. Best expects ULIC’s operating profile to improve through effective expense controls, increased distribution and expanding sales with enhanced risk management while maintaining a very strong balance sheet. ULIC will be an integral part of Kuvare’s operations and A.M Best has noted positive contributions from its ownership of another life subsidiary.
Offsetting rating factors include ULIC’s historic declining life sales, which have been geographically concentrated in the Midwest over the last five years. As a result, ULIC’s has had fluctuating earnings and poor operating returns when compared with peers.
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