A.M. Best Assigns Rate to UnitedHealth's New Senior Debt Offering.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--March 21, 2003

A.M. Best Co. has assigned an "a" rating to $450 million of 4.875% 10-year senior unsecured notes issued by UnitedHealth Group Incorporated (UnitedHealth) (NYSE: UNH) (Minnetonka, MN).

The securities were issued under UnitedHealth's previously filed $1.25 billion shelf registration with the Securities & Exchange Commission. The financial strength ratings of the group's life and health insurance subsidiaries remain unchanged. The rating outlook is stable.

A.M. Best expects the proceeds to be used to refinance the $250 million and $100 million senior notes, which mature later this year and reduce outstanding indebtedness under the company's commercial paper program. UnitedHealth's current financial leverage is approximately 28% as of December 31, 2002. A.M. Best anticipates UnitedHealth's earnings capacity and cash flow capabilities will be more than adequate to service the existing debt. UnitedHealth's strong earnings and operating cash flows provide ample debt service coverage, making it capable of supporting a capital structure somewhat higher than the current level of debt. A.M. Best does not foresee debt-to-capital to exceed the 25%-30% range in the near- to medium-term.

UnitedHealth's historically good capital position--consisting of significant retained earnings--provides a strong financial backing to its insurance companies and HMOs. A key strength of the organization derives from its well-capitalized life insurance companies and unregulated businesses. Strong operating cash flows from these activities provide ample funds to support other life insurance companies and HMOs, address capital expenditures and its merger and acquisition activities. Remaining excess funds are generally applied towards share repurchases. UnitedHealth's insurance-regulated entities have strong risk-based capital positions and ample dividend capacity for servicing debt at the holding company.

UnitedHealth is the nation's largest publicly traded health benefit company serving almost 22 million members. It continues to retain and augment membership while growing profits and increasing market share with its diverse product offerings. In A.M. Best's opinion, UnitedHealth will continue to expand primarily through organic growth, supplemented by strategic acquisitions in existing and new markets.

The following debt rating has been assigned:

UnitedHealth Group Incorporated-

-- "a" rating on $450 million of 4.875% 10-year senior

unsecured notes, due April 2013

The following debt ratings have been affirmed:

UnitedHealth Group Incorporated-

-- "a" rating on $100 million senior unsecured floating rate notes, due November 2003

-- "a" rating on $250 million 6.6% senior unsecured notes, due December 2003

-- "a" rating on $150 million senior unsecured floating rate notes, due November 2004

-- "a" rating on $400 million 7.5% senior unsecured notes, due November 2005

-- "a" rating on $400 million 5.2% senior unsecured notes, due January 2007

-- "AMB-1" rating on the commercial paper and extendible commercial notes

The following indicative ratings on securities available under shelf registration have been affirmed:

UnitedHealth Group Incorporated-

-- "a" senior unsecured debt rating

-- "a-" subordinated debt rating

-- "bbb+" preferred stock ratings

UnitedHealth Group Capital I, II, III and IV--

-- "a-" preferred security rating

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.