Abstract: In this paper we will discuss about A.M. Best Co.'s rating for the Universal American Financial Corporation (UAFC).
For the fiscal year 2007, UAFC got B++ financial strength rating and “bbb” issuer credit rating. The Marquette National Life Insurance Company (MNLIC), a subsidiary of UAFC also got the same rating from A.M Best.
Universal American Financial Corporation (UAFC) had been awarded B++ financial strength rating and “bbb” issuer credit rating by the A.M. Best Co., an US based credit rating agency, for the financial year 2007.
A.M Best also awarded "bb" issuer credit rating on Universal American Financial Corporation's self registration and the ratings had been assigned a “negative outlook”.
A B++ financial strength rating showed that UAFC had improved its operating results and secured its presence in the American health insurance market.
In 2007, the Universal American Financial Corporation made a business deal, worth 630 million dollars, with MemberHealth, Inc., a private pharmaceutical company, to own it.
It was the largest ever transaction made by UAFC. The Universal American stock agreed to finance this acquisition cost.
Universal American had been performing well over the years. However, A.M Best did have a close look on that above-mentioned merger while determining those ratings.
This acquisition would increase Universal American's goodwill in the market and considering this factor; A.M best rated the company highly.
The Marquette National Life Insurance Company, a subsidiary of Universal American Financial Corporation and deals with the PFFS business and Medicare supplements, had also been awarded B++ financial strength rating and “bbb” issuer credit rating by the A.M Best Co.