March 13, 2013
On March 10, the Delaware Chancery Court granted a petition filed by the Delaware Department of Insurance seeking an order of rehabilitation for Ullico Casualty Company. The Company consented to the order. As a result, a statutory Receiver appointed by the Court will control Ullico Casualty Company's operations going forward. Ullico Inc.'s management team has been cooperating with the department, has an excellent relationship with the Receiver and is working closely with the Receiver's team of rehabilitation specialists to ensure a smooth transition.
Customers who have a Ullico Casualty Company policy will be contacted by the Receiver, but may also obtain information at http://delawareinsurance.gov/departments/berg/rehab_bureau.shtml or by dialing 1 (800) 218-1044. For our professional liability customers, who have a coverage issued through either State National Insurance Company or Hudson Insurance Company, both A rated carriers, Ullico Casualty Group, Inc., continues to administer your policies and manage your claims, and you may continue to contact Ullico Casualty Group's professional staff about those policies.
Ullico Casualty Group took numerous steps over the last year to transition its multiemployer and government fiduciary liability and union liability coverages to a new platform and, earlier this year, we announced that we are issuing policies with Alterra America Insurance Company (Alterra America), which has a financial strength rating (FSR) of A (Excellent) and Financial Size XV by AM Best Company as of December 31, 2012. Alterra America and Ullico Casualty Group have a long-term contract and our market is responding very positively to this new partnership. The rehabilitation order does not affect the Alterra America policies.
The rehabilitation order has only placed the Ullico Casualty Company in rehabilitation and the other business lines of Ullico Inc. are operating as normal. The Union Labor Life Insurance Company had a strong year in 2012 and continues to offer its complete line of life, medical stop loss and specialty insurance products to our union customers. A new line of life insurance products has been designed for worksite sales, and that initiative will launch later in 2013.
Ullico Investment Company, Inc. and Ullico Investment Advisors, Inc. continue to thrive. Our products for institutional investors remain unchanged and all products and services will continue to be offered. “J for Jobs,” Ullico's flagship investment product, is currently involved with exciting commercial real estate developments around the country. Our infrastructure investment opportunities are generating excitement and support in our marketplace. Investors in our suite of competitive investment products can rest assured that the rehabilitation order does not affect their investments.
The financial challenges that faced Ullico Casualty Company arose in non-core program business and, although we terminated those programs over the last year, many have left a legacy of losses. We regret any inconvenience caused by these developments, and we pledge to our valued customers that we will strive to remain transparent throughout the rehabilitation process.
For more information about the Ullico Casualty Company Receivership, click here.