CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 31, 2007 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating (FSR) to B+ (Good) from B (Fair) for Family Life Insurance Company (Family Life) (Austin, TX). The FSR has been removed from under review with developing implications and assigned a stable outlook. Additionally, A.M. Best has affirmed the FSR of B+ (Good) of Central United Life Insurance Company (Arkansas), Investors Consolidated Insurance Company (New Hampshire) and Manhattan Life Insurance Company (New York). These four companies comprise the Manhattan Insurance Group (Manhattan Insurance) (Houston, TX). The outlook for this rating is stable.
In December 2006, Family Life was acquired by Manhattan Insurance. The rating upgrade reflects A.M. Best's opinion that Family Life is now part of a stronger organization, it maintains an appropriate level of risk-adjusted capitalization and considerable expense savings are expected going forward. Previously, Family Life maintained a high expense structure, which historically repressed its operating results.
The affirmation of the rating for the other members of Manhattan Insurance reflects the overall success the organization has had historically in acquiring and managing problematic books of business, its growing capitalization position and low expense structure. However, A.M. Best notes that Manhattan Insurance has not experienced as much success in its efforts to grow its business organically. As the organization continues to grow through acquisitions, it will need to continue to effectively manage its capital position in order to maintain appropriate risk-based capitalization levels.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.