Press Release - DECEMBER 05, 2018
AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of 5 Star Life Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 05, 2018
The ratings reflect 5 Star Life’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the continued financial and operational support of its parent, Armed Forces Benefit Association (AFBA).
5 Star Life has reported improving trends in earnings and capital that are in-line with expectations to return to profitability in the near term. Additionally, improved performance supports growth in total capital and the maintenance of risk-adjusted capitalization in the strongest category, according to Best’s Capital Adequacy Ratio. The improved performance is related primarily to the company’s shift from high strain final expense products to worksite products, which have lower statutory strain and shorter breakeven periods, as well as the active management of expenses to support sustainable profitability going forward.
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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