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FOR IMMEDIATE RELEASE
OLDWICK - JULY 13, 2018 11:09 AM (EDT)
A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Guarantee Trust Life Insurance Company (GTL) (Glenview, IL). The Credit Rating (rating) outlook for the Long-Term ICR has been revised to stable from positive, while the outlook for the FSR remains stable.
The ratings reflect GTL’s balance sheet strength assessment, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
GTL’s rating upgrade is attributed to its very strong risk-adjusted capital measures, its solid use of reinsurance to mitigate risk exposure and conservative investment strategies to maximize lower risk returns. The reported operating earnings trend has been favorable for several years. This trend was driven by its solid returns from its accident and health product lines; however, the consolidated premium trend has been flat following a loss of large producing agent in 2015. A.M. Best notes that GTL is working to grow sales through existing and new distribution channels. A.M. Best expects the favorable earnings trends to continue through the medium term as the company improves its product distribution through its developing relationships among various sales partnerships. GTL is a niche player in the supplemental life and health markets, offering various products aimed at the senior markets, and is one of the leaders in the rapidly growing hospital indemnity market. The company has some concentration of business geographically and is operating in the increasingly competitive senior marketplace.
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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