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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 29, 2019 04:22 PM (EDT)
AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of “bbb” of New Era Life Insurance Company and its wholly owned life insurance subsidiaries, New Era Life Insurance Company of the Midwest and Philadelphia American Life Insurance Company. The outlook of the FSR remains stable. All companies are domiciled in Houston, TX, and collectively are known as New Era Group.
The ratings reflect New Era Group’s balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised Long-Term ICR outlook to positive is driven mainly by continuous business growth and improvement of risk-adjusted capital and quality of capital. The group’s capital also has increased significantly to $90.9 million in 2018 from $52.6 million in 2012. As a result, the group has steadily reduced leverage metrics stemming from its $10 million surplus note. Operating performance is adequate and improving, as evidenced by good loss ratios and return on equity (ROE) measures. The group’s business profile consists of three core lines of business, for which the business growth of each is managed to achieve the group’s targeted ROEs, and it has a good track record of management and pricing. ERM continues to be performed well by the group as it identifies its risks well. The group also displays a solid understanding of risk-reward tradeoffs on both sides of the balance sheet, which is a key principle by which the group is managed.
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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