A.M. Best Downgrades Ratings of Ullico Inc.’s Insurance Operations
Oldwick, NJ, Mar. 3 - Business Wire - A.M. Best Co. has downgraded the financial strength ratings to B (Fair) from B+ (Very Good) of ULLICO Inc.'s (Wilmington, DE), life/health subsidiaries, Union Labor Life Insurance Company (Baltimore, MD) and its wholly-owned subsidiary, ULLICO Life Insurance Company (Austin, TX). Also, the financial strength rating has been downgraded to B++ (Very Good) from A- (Excellent) of the property/casualty subsidiaries, Ulico Insurance Group (UIG) (Wilmington, DE), which includes two inter-company pooling members, Ulico Casualty Company (Delaware) and its wholly-owned subsidiary, Ulico Indemnity Company (Arkansas). The stand-alone financial strength rating of B (Fair) of Ulico Standard of America Casualty Co (California) has been affirmed. All of the ratings have been assigned negative outlooks. These rating actions reflect the limited financial flexibility of the parent holding company, ULLICO Inc.; substantial investment concentration risk at the parent, the life insurance subsidiaries and affiliated non-risk bearing subsidiaries; decline in surplus at the life insurance subsidiaries and ongoing operating losses at the life and property/casualty insurance subsidiaries.
Published on March 3, 2003
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