AM Best Upgrades Issuer Credit Rating of United National Life Insurance Company of America

OLDWICK, N.J.--()--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of United National Life Insurance Company of America (UNL). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR is stable. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” of UNL’s affiliate, Guarantee Trust Life Insurance Company (GTL). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Glenview, IL.

The ratings of UNL reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The upgrade of UNL’s Long-Term ICR is attributed to a strengthened level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). This has resulted from a higher level of pre-tax net operating gains reported over the past three years, driven by a decreasing combined ratio. Growth in net premium over the past two years also has contributed to the company’s improved operating performance. UNL operates in highly competitive supplemental accident & health and life insurance markets. While the company has expanded its geographic reach at a measured pace in recent years, net premium remains concentrated somewhat in its cancer products, and approximately two-thirds of direct premium is derived from five states.

The ratings of GTL reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate ERM. GTL’s rating affirmations reflect the maintenance of the strongest level of risk-adjusted capitalization, partially offset by limited financial flexibility. The company continued to report a strong pre-tax net operating gain and net premium growth in 2019, in addition to favorable return on equity and return on revenue.

GTL is also challenged by highly competitive supplemental accident & health and life insurance markets. The company is one of the market leaders in the senior indemnity space, focused on filling gaps with niche indemnity products. While business is fairly diverse, nearly one-half of net premium is derived from hospital indemnity products.

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 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 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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Brian Virostek
Financial Analyst
+1 908 439 2200, ext. 5531
brian.virostek@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Brian Virostek
Financial Analyst
+1 908 439 2200, ext. 5531
brian.virostek@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com