A.M. Best Takes Various Rating Actions on the Former Subsidiaries of PacifiCare Health Systems, Inc.

OLDWICK, N.J. -- A.M. Best Co. has taken various rating actions on the former subsidiaries of PacifiCare Health Systems, Inc. presently owned by UnitedHealth Group, Inc. (UnitedHealth) (NYSE: UNH) (Minnetonka, MN). PacifiCare Health Systems, Inc. is now known as PacifiCare Health Systems, LLC (PacifiCare). Additionally, A.M. Best has affirmed the financial strength rating (FSR) of A- (Excellent) of PacifiCare of California, Inc. (California) and PacifiCare Life and Health Insurance Company (Indiana). The rating outlook is positive.

A.M. Best has also affirmed the FSR of A- (Excellent) of American Medical Security Life Insurance Company (Cypress, CA). The rating outlook is stable. Numerous other former subsidiaries of PacifiCare are having their FSRs upgraded to A- (Excellent) from B++ (Very Good) with a stable outlook. Concurrently, A.M. Best has assigned various issuer credit ratings (ICR) to all of the former PacifiCare subsidiaries, with either a positive or stable outlook.

Concurrently, A.M. Best has upgraded PacfiCare's ICR to "a" from "bbb-" and its debt rating to "a-" from "bb+" on $108 million 3.0% subordinated convertible notes, due 2032. Both ratings have a stable outlook. These rating actions reflect the December 20, 2005, completion of the acquisition of PacifiCare by UnitedHealth. This transaction is expected to strengthen PacifiCare's presence in its markets, specifically the Medicare market with the addition of

UnitedHealth's AARP market franchise and Medicare Supplement. The added strength of UnitedHealth, including membership in PacifiCare's networks, additional product offerings and technological infrastructure should provide PacifiCare with greater economies of scale.

The ratings on PacifiCare reflect the implicit financial support of UnitedHealth. UnitedHealth's diversified cash flows and disciplined capital management provide strong financial support. The firm generates superior cash flows and subsidiary dividend capacity to support its capital structure, with financial leverage approximating 30% and interest coverage exceeding 20 times. This trend could continue during the medium term, owing to UnitedHealth's business model, management acumen and secular trends.

For a complete listing of UnitedHealth Group, Inc.'s financial strength, issuer credit and debt ratings, please visit http://www.ambest.com/press/122302unitedhealth.pdf.

For Best's Debt Ratings, all other 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.