The ratings reflect UniMed’s very strong risk-adjusted capitalization, which results from the company’s low underwriting leverage, favorable liquidity and high quality of assets. In addition, UniMed has a good performance track record, with an average combined ratio of approximately 95% and a compounding annual growth rate in policyholders’ surplus of approximately 10% over a five-year period.

These positive rating factors are partially offset by UniMed’s business concentration risk. Despite its good historical performance, the company’s premium mix remains concentrated in the domestic group health insurance market. This makes prospective performance relatively more susceptible to adverse changes in local economic and underwriting conditions.

While positive rating actions are unlikely, negative rating actions may occur if UniMed’s underwriting results show a major deficit, or if there is a significant deterioration in risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) 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.

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