Press Release - FEBRUARY 01, 2019
AM Best Withdraws Credit Ratings of State Trust Life and Annuities, Limited
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 01, 2019
The ratings reflect STL’s balance sheet strength, which AM Best categorizes as strong, as well as the company’s marginal operating performance, limited business profile and weak enterprise risk management. The negative outlook reflects the further deterioration in the company’s operating performance due to strategic initiatives. The company has experienced weak premium growth along with higher-than-normal expenses, driven by their expansion strategy via investments in operating company startups in countries such as the Dominican Republic, El Salvador, Guatemala, Honduras and Ecuador. The marginal operating performance reflects not only these expenses, but also economic pressures in the countries in which they operate that have negatively impacted new business premium. As a result, a significant decline in equity has been observed over the past several years, which has required a continued reliance on private funding from investors.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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