Union Labor Life Receives Positive Credit Rating Outlook from A.M. Best

Washington, D.C. (August 7, 2017) — The Union Labor Life Company received a positive credit rating outlook from A.M. Best, the world's oldest insurance rating and information source.

A.M. Best revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of "bbb" for The Union Labor Life Insurance Company, a subsidiary of Ullico Inc. The outlook of the FSR remains stable.

"The positive credit rating outlook from A.M. Best reflects the momentum we have created over the past several years and is a vote of confidence in our long-term future," said David Barra, senior vice president and chief financial officer at Ullico Inc.

Founded more than 90 years ago, Union Labor Life provided union members and their families the insurance protection that was often unavailable to them in traditional insurance marketplaces. The company continues to honor its legacy by providing an unparalleled combination of insurance expertise and experience to the union workplace.

"Union Labor Life continues to be a leader in offering insurance products designed for the union marketplace, covering more than 2 million members," said Ed Smith, president and CEO of Ullico. "From group life and supplemental insurance solutions for union members to medical stop loss for health and welfare funds, we have always anticipated and adapted to the needs of our customers."

"Last year, we celebrated with two group life policyholders who have been with us since 1928. At the same time, we welcomed 51 new policyholders," said Daniel Wolak, president of The Union Labor Life Insurance Company. "With a 97 percent retention for our group life business, we see that union funds are pleased with our coverage and continue to purchase their coverage from us year after year."

About Ullico

The Ullico Inc. family of companies provide insurance and investment solutions for labor organizations, union employers, institutional investors and union members. Founded 90 years ago, the company takes a proactive approach to anticipating labor's needs, developing innovative financial and risk solutions and delivering value to our clients. Our products are tailored to promote financial security and stability for American workers.

The Ullico Inc. family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, LLC.; Ullico Investment Company, LLC.; and Ullico Investment Advisors, Inc.

For additional information, visit www.ullico.com.


AM Best's Press Release - JULY 27, 2017

A.M. Best Revises Issuer Credit Rating Outlook to Positive for The Union Labor Life Insurance Company


CONTACTS:

Kate Steffanelli
Senior Financial Analyst
+1 908 439 2200, ext. 5063
kate.steffanelli@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Michael Adams
Senior Financial Analyst
+1 908 439 2200, ext. 5133
michael.adams@ambest.com
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JULY 27, 2017
A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of "bbb" of The Union Labor Life Insurance Company (ULL). The outlook of the FSR remains stable.

ULL is a subsidiary of Ullico Inc., a holding company that offers insurance and financial products and services with its common stock held by various labor organizations and their related benefit funds. Both companies are headquartered in the District of Columbia.

The revised Long-Term ICR outlook reflects ULL's balance sheet strength that is supported by very good risk-adjusted capitalization, as well as its lower risk investment allocation and adequate level of liquidity. Additionally, ULL has reported a more consistent trend of profitability over the past few years, primarily driven by its core stop-loss line of business and supplemented by its life and accidental death & dismemberment coverages. The organization also benefits from its separate accounts business, which continues to report growth in assets under management, favorable returns and outperforms relative to benchmarks. A.M. Best notes that ULL has an established position as a provider of insurance and investment products to the labor market.

While ULL's results have trended favorably in recent periods, the company in the past has experienced some volatility within its stop loss business. ULL has partnered with several highly rated reinsurers to reduce its exposure to risk in this and other products, which has resulted in a moderate increase in reinsurance leverage. Due to the company's more conservative investment philosophy, the lower interest rate environment has resulted in a less favorable trend in investment returns. Management continues to focus on improving expense ratios and driving revenue growth through underwriting and pricing improvements across all product lines. A.M. Best believes the company could be challenged to report a sustainable level of profitable stop-loss premium growth going forward due to the highly competitive market for that product.

This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world's oldest and most authoritative insurance rating and information source.


European Union Disclosures
A.M. Best - Europe Rating Services Limited (AMBERS), a subsidiary of A.M. Best Rating Services, Inc., is an External Credit Assessment Institution (ECAI) in the European Union (EU). Therefore, credit ratings issued and endorsed by AMBERS may be used for regulatory purposes in the EU as per Directive 2006/48/EC.

Australian Disclosures
A.M. Best Asia-Pacific Limited (AMBAP), Australian Registered Body Number (ARBN No.150375287), is a limited liability company incorporated and domiciled in Hong Kong. AMBAP is a wholesale Australian Financial Services (AFS) Licence holder (AFS No. 411055) under the Corporations Act 2001. Credit ratings emanating from AMBAP are not intended for and must not be distributed to any person in Australia other than a wholesale client as defined in Chapter 7 of the Corporations Act. AMBAP does not authorize its Credit Ratings to be disseminated by a third-party in a manner that could reasonably be regarded as being intended to influence a retail client in making a decision in relation to a particular product or class of financial product. AMBAP Credit Ratings are intended for wholesale clients only, as defined.

Credit Ratings determined and disseminated by AMBAP are the opinion of AMBAP only and not any specific credit analyst. AMBAP Credit Ratings are statements of opinion and not statements of fact. They are not recommendations to buy, hold or sell any securities or any other form of financial product, including insurance policies and are not a recommendation to be used to make investment /purchasing decisions.

Important Notice: A.M. Best's Credit Ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. For additional information regarding the use and limitations of credit rating opinions, as well as the rating process, information requirements and other rating related terms and definitions, please view Understanding Best's Credit Ratings.

A.M. Best receives compensation for rating related services provided to organizations that it rates. A.M. Best does not offer consulting or advisory services.



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