AM Best Upgrades Unity Financial Life Insurance Company’s Issuer Credit Rating Outlook to Positive

AM Best Upgrades Outlook to Positive for Unity Financial Life Insurance Company; Affirms Ratings

AM Best has revised the outlook for the Long-Term Issuer Credit Rating (Long-Term ICR) of Unity Financial Life Insurance Company (Unity) from stable to positive. Additionally, the agency affirmed Unity’s Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good). The FSR outlook remains stable.

Unity’s ratings reflect its adequate balance sheet strength, satisfactory operating performance, limited business profile, and effective enterprise risk management.

The positive outlook for the Long-Term ICR reflects improvements in Unity’s balance sheet strength. In 2023, the company terminated a reinsurance treaty with Heritage Life on its single premium immediate annuity product, resulting in a significant increase in assets. Enhanced investment income, driven by asset growth and improved net yield, contributed to Unity’s record net income in 2023. With the termination of the reinsurance contract, Unity has no active treaties on new business, leading to a decline in reinsurance leverage, which is expected to persist.

Unity’s record net income in 2023 surpassed the previous year’s record, boosting its financial position with capital and surplus exceeding $20 million for the first time. The company’s risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR), improved to a projected very strong level by year-end 2023. While the expansion of the single premium immediate annuity product has enhanced operating performance, AM Best will monitor the impact of additional risk on Unity’s risk-adjusted capitalization as it grows and retains new business.

This announcement pertains to Credit Ratings published on AM Best’s website. For comprehensive rating information and disclosures, visit AM Best’s Recent Rating Activity web page. For guidance on the use and limitations of Credit Rating opinions, refer to the Guide to Best’s Credit Ratings and the Guide to Proper Use of Best’s Ratings & Assessments.

AM Best, headquartered in the United States, operates globally with offices in over 100 countries, providing credit ratings, news, and data analytics tailored to the insurance industry. For more information, visit

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