A.M. Best Comments on Universal American's Proposed Acquisition of MemberHealth.OLDWICK, N.J. -- A.M. Best Co. has commented that the issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "bb" on holding company Universal American Financial Corporation (Universal American) (Rye Brook, NY) [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] and the financial strength ratings of B++ (Good) and B+ (Good) and ICRs of "bbb" and "bbb-" on Universal American's primary insurance subsidiaries are unchanged at this time. The outlook on all ratings remains negative. This follows the announcement that Universal American has entered into a definitive agreement to acquire MemberHealth, Inc., a privately held pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. benefits manager and sponsor of CCRx, a national Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Part D Plan. Universal American plans American plan n. Abbr. AP A system of hotel management in which a guest pays a fixed daily rate for room and meals. Noun 1. to acquire MemberHealth for $630 million plus potential performance based consideration. The cost of the acquisition will be financed by cash and Universal American stock. The transaction is expected to close late in third quarter 2007 pending regulatory approval. Under the terms of agreement, Universal American will issue stock to MemberHealth shareholders valued at $20 per share. In addition, Universal American will also issue securities to private investors, value at $20 per share, in a private placement for gross proceeds of $350 million of which $100 million will be funded within the next two weeks. After the transaction, Universal American is projected to maintain an appropriate debt/capitalization ratio and fixed coverage charges for the organization's current ratings. Historically, Universal American has been active in making acquisitions. The MemberHealth transaction would be the largest to date. With Universal American's focus turning towards expansion of its Part D business, the company continues to compete more directly with larger companies with much greater financial resources. In addition, the organization is also becoming more reliant upon government reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates, which are currently very good but could be lowered in the future. A.M. Best is currently beginning its annual review of Universal American. Upon completion of the review, A.M. Best will have additional commentary regarding the group's ratings as well as the rating outlook based on the pending MemberHealth transaction. For 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. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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