AM Best Revises Issuer Credit Rating Outlook to Positive for Unity Financial Life Insurance Company
19 Abril 2024 - 3:15PM
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” (Good) of Unity Financial Life Insurance Company
(Unity) (Cincinnati, OH). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Unity’s balance sheet
strength, which AM Best assesses as adequate, as well as its
adequate operating performance, limited business profile and
appropriate enterprise risk management.
The positive outlook of the Long-Term ICR is a result of
improvements in the company’s balance sheet strength. Unity
terminated a reinsurance treaty that was in place with Heritage
Life on the company’s single premium immediate annuity product in
2023, which led a significant increase in assets. Due to a
combination of the growth in assets combined with improved net
yield, Unity’s investment income improved significantly. The
company’s improved investment income largely drove its record net
income in 2023. With the reinsurance contract on the SPIA product
terminated, the company has no active treaties on new business.
Accordingly, reinsurance leverage declined in 2023, and this is
expected to continue.
Unity’s record net income in 2023 surpassed the previous record
set in 2022. The company’s operating performance has improved its
financial position, with capital and surplus exceeding $20 million
for the first time. The company’s risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR), also improved and
is projected to be at the very strong level as of year-end 2023.
While the expansion of the single premium immediate annuity product
has improved the company’s operating performance, AM Best will
continue to monitor the impact of additional risk on Unity’s
risk-adjusted capitalization as its grows and retains new
business.
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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Tyler Samani Financial Analyst +1 908 882
2296 tyler.samani@ambest.com Anthony McSwieney Senior
Financial Analyst +1 908 882 2113
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christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
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