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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - FEBRUARY 17, 2011 01:30 PM (EST)
A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength ratings of B+ (Good) and issuer credit ratings of "bbb-" of Central United Life Insurance Company (Central United) (Little Rock, AR), The Manhattan Life Insurance Company (Great Neck, NY), Family Life Insurance Company (Family Life) (Houston, TX) and Investors Consolidated Insurance Company (Concord, NH), together known as the Manhattan Insurance Group. All companies are subsidiaries of Harris Insurance Holdings, Inc. (Houston, TX).
The revised outlook reflects the improved capitalization of the lead company, Central United, relative to 2009 when its risk-adjusted capital was negatively impacted by the purchase of the remaining outstanding shares of its affiliated holding company, Manhattan Insurance Group, Inc.
The organization continues to work toward the further strengthening of its capital position and reduction of its affiliated investments as a percentage of overall capital. Over the past year, each of the core companies reported positive operating trends. Improved loss ratios were reported across the majority of Central United's closed blocks of business and drove improved net operating income. Additionally, continued expense management and the overall conservative investment philosophy of the group contributed to operating gains.
While the group has achieved further diversification through its partnership in which it coinsures Medicare supplement products, A.M. Best believes it will be challenged to grow its business organically through the marketing of its core worksite line of products. A.M. Best notes that, despite the recent improved profitability of the cancer business, those blocks continue to expose the group to market and regulatory risks. Additionally, Family Life, which markets mortgage term life policies, will likely continue to be challenged due to the sluggish real estate market.
The principal methodology used in determining these ratings isBest's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Life and Health Insurers"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.