JANUARY 31, 2020 01:42 PM (EST)
AM Best Affirms Credit Ratings of Elips Life Insurance Company
|Igor Bass |
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+1 908 439 2200, ext. 5201
Manager, Public Relations
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Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 31, 2020 01:42 PM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” of Elips Life Insurance Company (elipsLife) (headquartered in Schaumburg, IL, USA). The outlook of these Credit Ratings (ratings) is stable. elipsLife is an indirect subsidiary of Swiss Re Ltd (Swiss Re).
The ratings reflect elipsLife’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and very strong enterprise risk management. The ratings also receive lift from elipsLife’s ultimate parent company, Swiss Re. AM Best expects Swiss Re to continue to provide reinsurance and capital support to elipsLife when necessary, due to its important role in Swiss Re’s long-term plans to grow its direct group life and health insurance business in the United States.
AM Best expects elipsLife to continue to benefit from quota share reinsurance protection from Swiss Re. In 2019, a one-off reinsurance allowance from Swiss Re was received to assist coverage of upfront investment costs. elipsLife will be Swiss Re’s primary direct writer of group life and health insurance in the United States, and will follow the already established business model in Europe.
The ratings reflect continued expectations derived from the company’s business plans and its experienced management team. Despite the early stages of business development, the company has made significant progress in developing distribution relationships. elipsLife is expected to achieve profitability in the near future.
The company’s business profile remains limited due to the early stage of development, the lack of product diversification and execution risk during the company’s first few years of operation. AM Best considers the group life and health insurance market segment as very competitive, with many large carriers and strong price competition. The company’s ability to execute its business plan will be a key rating factor going forward, as will its continued support from Swiss Re. AM Best is monitoring elipsLife’s performance continuously to ensure that targeted results are realized as planned.
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 Guide to 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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.