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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 05, 2016 09:36 AM (EDT)
A.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Germania Life Insurance Company (Germania Life) (Brenham, TX). The outlook assigned to these Credit Ratings (ratings) is stable.
The rating actions follow the successful resolution of a material charge against Germania Life’s capital, related to reserve adjustments that Germania’s parent, Germania Farm Mutual Insurance Association, has retroactively funded as of year-end 2015. These reserve adjustments offset the reserve charge. Additionally, the company has reviewed its actuarial modeling and has outlined plans to adjust pricing on some of its in-force term life policies, which is expected to aid future profitability for the impacted blocks of business.
Positive rating movement for Germania Life could occur if its parent company experiences a positive rating action and Germania Life maintains its strategic importance and value to the group. Factors that could lead to negative rating action for Germania Life include negative rating movement on its parent company, or if the strategic value or its contribution to the parent decreases in A.M. Best’s view. Additionally, a continuation or worsening of operating losses, which could trigger a material decline in the company’s risk-adjusted capitalization position, could also lead to a negative rating action.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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.
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