A.M. Best Comments on UICI's Acquisition of HealthMarket, Inc.'s Operating Assets.

OLDWICK, N.J. -- A.M. Best Co. views favorably UICI's (Richland Hills, TX) (NYSE:UCI) announcement of the execution of a definitive agreement to acquire substantially all of the operating assets and key management of HealthMarket, Inc. (Norwalk, CT), a provider of consumer driven health plans to small businesses. The assets are expected to be held in UICI's subsidiary, The Mega Life and Health Insurance Company (Oklahoma).

This acquisition complements UICI's self-employed health insurance segment, by augmenting its product lines, distribution and service platforms and providing revenue and earnings growth opportunities. The financial strength rating of the UICI companies remains unaffected.

Despite intense competition, UICI's existing customer relationships provide a competitive advantage. Several large, publicly-traded health insurers have entered into this market, in addition to the established presence of not-for-profit Blue Cross Blue Shield plans and other local underwriters. However, UICI receives a measurable amount of sales leads in this segment from employers that purchase individual coverage and want to purchase group coverage for their employees.

UICI will finance the transaction with cash rather than stock or debt proceeds. The holding company, UICI, and its regulated subsidiaries maintain sufficient capital to finance this transaction and retain adequate surplus to sustain their current financial strength rating.

For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 HMO 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.