A.M. Best Raises Rating of U.S. Financial Life Insurance Company from "B++" -Very Good- to "A-" -Excellent-.OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 8, 1999--A.M. Best Co. today upgraded its rating on U.S. Financial Life Insurance Company, Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. , to "A-" (Excellent) from "B++" (Very Good) and removed it from under review. The upgrade follows the acquisition of U.S. Financial Life by MONY MONY Mutual of New York (Insurance - Syracuse, NY) Life Insurance Co., a subsidiary of the MONY Group Inc.--a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services organization with nearly $25 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The rating reflects the company's strong niche position in the special risk market, its high-quality investment portfolio and strong growth characteristics. The rating also acknowledges the strategic and financial benefits expected from the company's affiliation with a larger, more diversified financial services organization. U.S. Financial Life's statutory net premium writings have increased more than threefold over the five-year period ending 1997, and a 19% increase has been experienced through the end of the third quarter. Most of this growth has been driven by universal life sales in its specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. substandard substandard, adj below an acceptable level of performance. niche. A.M. Best considers the transaction to be beneficial to both parties by providing marketing opportunities to MONY through U.S. Financial's distribution network and access to its underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. experience in the specialized substandard market. Additionally, U.S. Financial will have access to the necessary capital to expand its business. With the financial backing of MONY, U.S. Financial expects to be able to continue broadening its product offerings and expanding its premium base. U.S Financial Life is licensed in 41 states and markets primarily life insurance products to the substandard market through over 15,000 agents and brokers. At the end of the third quarter, the company had statutory assets of $103.6 million, $18.1 million in capital and surplus and net premiums of $31.0 million. The "A-" (Excellent) rating of MONY Life Insurance Co. is not affected by this announcement. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. |
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