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AM Best Revises Issuer Credit Rating Outlook to Positive for Unity Financial Life Insurance Company

AM 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” (Good) of Unity Financial Life Insurance Company (Unity) (Cincinnati, OH). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Unity’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The positive outlook of the Long-Term ICR is a result of improvements in the company’s balance sheet strength. Unity terminated a reinsurance treaty that was in place with Heritage Life on the company’s single premium immediate annuity product in 2023, which led a significant increase in assets. Due to a combination of the growth in assets combined with improved net yield, Unity’s investment income improved significantly. The company’s improved investment income largely drove its record net income in 2023. With the reinsurance contract on the SPIA product terminated, the company has no active treaties on new business. Accordingly, reinsurance leverage declined in 2023, and this is expected to continue.

Unity’s record net income in 2023 surpassed the previous record set in 2022. The company’s operating performance has improved its financial position, with capital and surplus exceeding $20 million for the first time. The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), also improved and is projected to be at the very strong level as of year-end 2023. While the expansion of the single premium immediate annuity product has improved the company’s operating performance, AM Best will continue to monitor the impact of additional risk on Unity’s risk-adjusted capitalization as its grows and retains new business.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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