Statement on A.M. Best Co.’s Rating of Ullico Casualty Company and The Union Labor Life Insurance Company
We are pleased that A.M. Best Company affirmed The Union Labor Life Insurance Company’s financial strength rating (FSR) of B++ (Good) and Ullico Casualty Company’s FSR rating of B (Fair).
Union Labor Life ‘s B++ rating reflects its profitability over the past four years and its solid capitalization. Union Labor Life continues to maintain a strong position in the union marketplace with its group life, medical stop-loss, supplemental life and health products, and its flagship Separate Account J, “J for Jobs”.
Over the last several months, we have taken great strides to improve the performance of Ullico Casualty Company. A key component has been replacing the unit’s former leadership with an experienced executive from our Life and Health business unit and with several talented and experienced employees promoted from within the organization. The previous management team drifted away from Ullico Casualty’s core mission and market place, and entered into program business arrangements that have not served the interests of Ullico. The programs generated significant underwriting losses over the last year. It was clear that changes needed to be made.
Everyone at Ullico, from our Board of Directors, to our senior leadership, to the dedicated employees of Ullico Casualty, is committed to resolving these issues. We have restructured the organization, ended programs that did not serve our mission, made the company more efficient, set aside additional loss reserves and begun to execute new business strategies that will help to ensure Ullico Casualty’s future profitability.
Our refocus on Ullico Casualty’s core mission has already been beneficial. Our policy retention rates remain strong and we continue to grow new business in our core products: fiduciary and union liability.
We recognize that there is still work left to be done to improve the performance of Ullico Casualty. But Ullico is committed to returning the company to profitability by focusing on our core mission: serving the union market place. We will continue to ensure that our products are of the highest quality and meet the evolving needs of today’s union workforce.
For more information, contact:
Ben C. Hardaway
Senior Media Relations Manager