A.M. Best Affirms Ratings and Upgrades One Rating of Universal American Financial Corp.'s Subsidiaries; Revises Outlook to Stable.Business Editors
OLDWICK, N.J.--(BUSINESS WIRE)--May 20, 2004
A.M. Best Co. has affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
v.intr. the financial strength ratings of B++ (Very Good) for various Universal American Financial Corp. (Universal American) (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : UHCO) (Rye Brook, New York Rye Brook is a village in Westchester County, New York, United States. The population was 8,602 according to the 2000 census.
The Village of Rye Brook was established in 1982 and is in the Town of Rye. ) subsidiaries. The companies affected are Constitution Life Insurance Company (Texas), Pennsylvania Life Insurance Company (Pennsylvania), American Progressive Life & Health Insurance Company of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (New York), American Pioneer Life Insurance Company (Florida) and Penncorp Life Insurance Company (Canada). Additionally, A.M. Best has affirmed the financial strength rating of B+ (Very Good) of Union Bankers Insurance Company (Union Bankers) (Texas). A.M. Best has also upgraded the financial strength rating to B++ (Very Good) from B+ (Very Good) of Pyramid pyramid, structure
pyramid. The true pyramid exists only in Egypt, though the term has also been applied to similar structures in other countries. Egyptian pyramids are square in plan and their triangular sides, which directly face the points of the Life Insurance Company (Kansas). The outlook for all ratings has been revised to stable from positive.
The revised outlook is based on Universal American's pending acquisition of Heritage Health Systems, Inc. (Heritage), a senior managed care system. Universal American is acquiring Heritage for $98 million. The acquisition will be financed by cash held at the holding company and a new credit facility. A.M. Best believes the acquisition does not put pressure on Universal American's balance sheet. However, A.M. Best does believe the acquisition is a significant event in the future direction of the organization.
The acquisition is Universal American's first venture into the Medicare Advantage market, which has distinct differences from its current Medicare supplement focus. The Heritage model, which is successfully operating in Beaumont and Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation).
Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , is expected to be expanded into other selected parts of the country over time. This leads to the uncertainties associated with new markets, which have different competitors and unique features. It will take time to see how successfully Universal American's revised strategy is executed and how smoothly Heritage is integrated into the rest of the organization. Historically, Universal American has been successful in its strategy of purchasing and integrating newly acquired companies, but those earlier acquisitions were very similar to its existing operations. A.M. Best will be monitoring the growth and any potential capital needs of future expansion plans of Universal American.
The upgrading of Pyramid Life's rating is based on A.M. Best's opinion that Pyramid Life has been fully integrated into and is core to Universal American's senior health insurance strategy.
The rating affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. and outlook revision of Union Bankers is based on the company experiencing noticeable statutory strain over the past year since it has begun writing final expense life business.
For current Best's Ratings Best's rating
A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 1,050 health companies and more than 130 HMO HMO health maintenance organization.
A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, industry composites, please visit http://www.ambest.com/health/.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.