New Leaders Stabilize ULLICO And Try to Put Scandal in Past
The company provides competitively priced insurance and financial services for multi-employer trust funds, labor unions and the rank-and-file. But ULLICOs litany of troubles included a controversial corporate stock program for insiders that landed ULLICO under a congressional and legal microscope. Further scrutiny revealed shrinking assets, losses on core insurance lines and enormous company expenses.
A leading insurance rating agency twice downgraded ULLICO, and the Maryland state insurance commission threatened to place the company in receivership. The firm even lost its largest health insurance customer, which generated annual premiums of $25 million.