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Fitch Downgrades and Withdraws the IFS Rating of United Investors Life Insurance Company

^{Published on 2011-01-07 13:45:37 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Fitch Ratings has downgraded the Insurer Financial Strength (IFS) rating of United Investors Life Insurance Company (UILIC) to 'A' from 'A+', assigned a Stable Rating Outlook, removed the rating from Rating Watch Negative and withdrawn the rating.

The downgrade and withdrawal follow the close of the sale of UILIC to Protective Life Insurance Company (PLICO), a unit of Protective Life Corporation (NYSE: PL), by UILIC's former owner, Torchmark Corporation (NYSE: TMK). The IFS rating of UILIC was previously placed on Rating Watch Negative on Sept. 14, 2010 following the announcement of the proposed sale.

The rationale for the downgrade is that the IFS ratings of PL's life subsidiaries are one notch lower than the prior rating of UILIC. The Rating Watch reflected the likely migration of UILIC's ratings to those of PL once the acquisition closed. Prior to closing, TMK removed capital from UILIC via a special dividend of investment securities that brought UILIC's capital position to a lower level. UILIC has no ongoing marketing efforts to new customers and is expected to be merged into PLICO following a transition period of approximately 18 months. As a result, the IFS rating of UILIC is no longer considered by Fitch to be relevant to the agency's coverage.

Since the rating is being withdrawn, there are no key rating drivers that could result in an upgrade or a downgrade.

Fitch downgraded and withdrew the following rating, which was removed from Rating Watch Negative and assigned a Stable Rating Outlook:

United Investors Life Insurance Company

--IFS at 'A'.

Additional information is available at [ www.fitchratings.com ].

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (Aug. 16, 2010);

--'Life Insurance Rating Criteria' (March 24, 2010).

Applicable Criteria and Related Research:

Insurance Rating Methodology

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547766 ]

Life Insurance Rating Methodology

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=506285 ]

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