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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 23, 2013 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Gerber Life Insurance Company (Gerber Life) (White Plains, NY). The outlook for both ratings is stable.
The rating affirmations reflect Gerber Life’s established niche in marketing juvenile life, adult life and medical stop-loss insurance products nationally under the Gerber brand, as well as increasing net premium revenue and generally favorable operating results. Additionally, the company’s ratings receive enhancement from the financial strength and managerial support of its parent company, Nestlé Holdings, Inc., which is a U.S. subsidiary of the international food and beverage conglomerate, Nestlé, S.A. (Nestlé) (Switzerland) [Swiss: NESN].
These positive rating factors are partially offset by Gerber Life’s fluctuating individual life insurance operating results and the susceptibility of its core juvenile life insurance business to economic downturns. Additionally, A.M. Best notes that its overall business mix and source of operating gains are shifting somewhat with greater dependence on the cyclical medical stop-loss business.
A.M. Best believes Gerber Life is well-positioned at its current rating level. Negative rating actions may occur if the company’s operating results decline or risk-adjusted capital deteriorates, the Gerber brand name incurs reputational damage or its strategic importance to Nestlé materially diminishes.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.