Press Release - SEPTEMBER 29, 2016
A.M. Best Upgrades Credit Ratings of Mutual Trust Life Insurance Co.; Affirms Credit Ratings of Pan-American Life Insurance Co.
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 29, 2016
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a” of Pan-American Life Insurance Company (New Orleans, LA), its wholly owned subsidiary, Pan-American Assurance Company (New Orleans, LA), an affiliate, INRECO International Reinsurance Company (INRECO) (Cayman Islands), and an affiliate, Pan-American International Insurance Corporation (PAIIC) (Cayman Islands), a wholly owned subsidiary of INRECO — collectively referred to as the Pan-American Life Insurance Group (Pan-American Life). The outlook of these ratings is stable.
MTL is a stand-alone subsidiary of Pan-American Life Insurance Group, Inc., an intermediate holding company. Pan-American Life Mutual Holding Company (PALMHC), the ultimate parent of Pan-American Life, is a mutual insurance holding company. In 2015, PALMHC merged with Mutual Trust Holding Company, the mutual holding company parent of MTL at that time.
The rating actions taken on MTL reflect A.M. Best’s revised view of the strategic importance of MTL to Pan-American Life and the successful integration of MTL into the broader enterprise. MTL has become a more-important member of Pan-American Life as the functional focal point of the domestic life business of the consolidated entity. Additionally, the ratings of MTL continue to reflect its favorable stand-alone business profile focusing on traditional whole life and satisfactory risk-adjusted capitalization.
Pan-American Life’s rating affirmations reflect the benefits derived from the company’s long-established presence and name recognition in Latin America and the U.S.-Hispanic marketplace, as well as its improved balance sheet and income statement. The ratings also reflect Pan-American Life’s solid consolidated risk-adjusted capitalization, well-performing fixed-income investment portfolio and positive net operating performance. Partially offsetting these strengths are the challenges to grow statutory capital, sustain and improve consolidated net operating performance and successfully execute its business plans throughout the enterprise. The ratings also reflect the economic, political, and financial system risks associated with the Latin American and Caribbean countries where Pan-American Life writes a significant amount of premium.
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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