A.M. Best Places Ratings of PennCorp Life Insurance Company Under Review.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of B++ (Very Good) and the issuer credit rating of "bbb" of PennCorp Life Insurance Company (PennCorp) (Mississauga, Ontario) under review with developing implications.

This rating action follows Universal American Financial Corp.'s (Universal American) (NASDAQ: UHCO) (Rye Brook, NY) announcement that it has signed a definitive agreement to sell its UFAC (Canada), Inc. subsidiary, including the company's Canadian insurance subsidiary, PennCorp, to a venture that is 70% owned by La Capitale Civil Service Insurer, Inc., a subsidiary of La Capitale Financial Group Inc., and 30% owned by GMF Assurances, a French mutual insurance company, for approximately $131 million. Universal American will use the proceeds of the sale to support the organization's rapidly growing core senior insurance business and for general corporate purposes.

PennCorp's operations are concentrated in the individual accident and sickness disability insurance market for middle income, self-employed workers in Canada, as well as the senior market. A.M. Best notes that PennCorp has offered some diversification from Universal American's senior focus and has provided reliable operating results. However, the sale will enable the organization to better fund its growth strategy.

The transaction is expected to close in the fourth quarter of 2006, pending regulatory approval.

Universal American's holding company and the organization's U.S. insurance companies' ratings are unaffected by the announcement.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

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.