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."
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.
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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.
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