AUGUST 07, 2019 03:00 PM (EDT)
AM Best Affirms Credit Ratings of Sammons Financial Group, Inc. and Its Subsidiaries
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 07, 2019 03:00 PM (EDT)
The ratings reflect SFG’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.
The very strong balance sheet assessment is supported by SFG’s risk-adjusted capital position and strong asset and liability matched investment portfolio despite having a higher-than-industry allocation to structured securities. In addition, SFG’s strong operating performance is supported by its consistent pre-tax operating earnings and double-digit statutory returns on equity. Its business profile reflects SFG’s prominent market positions in the fixed index annuity, as well as its COLI/BOLI operating segments with a national footprint and more diversified product portfolio than some of its peers.
Offsetting detractors include a very competitive fixed index annuity segment, which is becoming more crowded, poor operating trends in SFG’s life segments, and a capital and surplus-to-liability ratio lower than similarly rated peers.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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