Press Release - JUNE 27, 2018

A.M. Best Upgrades Credit Ratings of TPM Life Insurance Company, Assigns Credit Ratings to AmFirst Life Insurance Company, I.I.


CONTACTS:
 Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Jeffrey Lane
Senior Financial Analyst
+1 908 439 2200, ext. 5567
jeffrey.lane@ambest.com
Christopher Sharkey
Manager, Public Relations
(908) 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
(908) 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 27, 2018
A.M. Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” for TPM Life Insurance Company (TPM Life) (Lancaster, PA), a wholly owned subsidiary of AmFirst Insurance Company (AmFirst) (Oklahoma City, OK). Additionally, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” of AmFirst and its wholly owned subsidiary, Monitor Life Insurance Company of New York (Monitor Life) (Utica, NY). The outlook of these Credit Ratings (ratings) remains stable. Concurrently, A.M. Best assigned an FSR of A- (Excellent) and a Long-Term ICR of “a-” to AmFirst Life Insurance Company, I.I. (San Juan, Puerto Rico). The outlook assigned to these Credit Ratings (ratings) is stable. AmFirst Life Insurance Company, I.I. is a newly added member of the AmFirst Insurance Group, which already includes AmFirst, Monitor Life and TPM Life.

The ratings of AmFirst Insurance Group reflect the companies’ balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

AmFirst Insurance Group exhibits the strongest measures of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and maintains solid liquidity and leverage measures. However, these favorable attributes are offset with the limited financial flexibility of the group, given its limited access to the capital markets and no current borrowing facilities. AmFirst Insurance Group’s operating performance is adequate. This assessment includes the favorable premium development attributed to growth in the group’s Premium Saver gap and dental products. The dental business adds profitable complementary premium diversification. A.M. Best views AmFirst Insurance Group’s business profile as limited due to the concentration of the gap product premium and its market position among insurance companies operating in its key state markets.

TPM Life’s rating reflects its importance to AmFirst Insurance Group’s domestic geographic diversification strategy to enter new states and market its Premium Saver gap insurance product. In addition to product premium growth, TPM Life is necessary for licensing purposes and provides access to AmFirst’s target markets.

AmFirst Life Insurance Company, I.I.’s ratings also reflect its strategic importance to the AmFirst Insurance Group’s geographic diversification strategy, and its share of common management and operational capabilities. AmFirst Life Insurance Company, I.I. is expected to manage all of AmFirst Insurance Group’s international medical, life and disability business.

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.

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