Press Release - AUGUST 02, 2018
A.M. Best Affirms Credit Ratings of Sammons Financial Group, Inc. and Its Subsidiaries
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 02, 2018
The ratings reflect SFG’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. The ratings also factor in SFG’s solid risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to support its insurance and business risks. The group’s trend of positive earnings and well-managed investment portfolio benefits from the resources and expertise of its investment manager, Guggenheim Partners Investment Management, which focuses on prudent credit underwriting expertise as a means to diversify the company’s asset portfolio for yield. As a result, the group has a high allocation to structured assets such as asset-backed securities, collateralized loan obligations, mortgage loans and private placements, which historically have performed well but are subject to potential higher impairments under stressed economic scenarios. SFG, Inc.’s financial and operating leverage is considered well-within an acceptable range at the current ratings level.
SFG holds prominent market positions in the individual life and fixed indexed annuity marketplaces, with plans to grow its business in Sammons Retirement Solutions marketing products such as mutual fund IRAs and variable annuities through wholesale distribution through independent broker/dealers.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.