FEBRUARY 19, 2021 10:08 AM (EST)
AM Best Affirms Credit Ratings of Symetra Financial Corporation and Its Subsidiaries
|Anthony McSwieney |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 19, 2021 10:08 AM (EST)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Symetra Life Insurance Company and its subsidiary, First Symetra National Life Insurance Company of New York (New York, NY), together referred to as Symetra Life Group. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” and the Long-Term Issue Credit Rating (Long-Term IR) of Symetra Financial Corporation (Symetra). The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Bellevue, WA, unless otherwise specified.
The ratings reflect Symetra Life Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Symetra Life Group’s balance sheet strength is at the very strong level, as measured by a combination of quantitative and qualitative measures with additional financial flexibility afforded by the ultimate parent, Sumitomo Life Insurance Company, which supports the group’s strategic initiatives. Profitability was impacted negatively during 2020 due to investment impairments and claims payments. The impacts from COVID-19 are expected to continue for at least several months during 2021. Premium trends for the year remain strong with top line results stronger than bottom line performance. Premium growth for the group is supported through strong and diverse distribution channels along with continued and newer partnerships. AM Best views Symetra’s risk management practices as being in-line with the scope of the group’s operations with a demonstrated ability to adjust during challenging environments. Going forward, AM Best anticipates that the group will grow capital organically through profitable operating performance.
The following Long-Term IR has been affirmed with a stable outlook:
Symetra Financial Corporation—
— “bbb+” on $250 million 4.25% senior unsecured notes, due 2024
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 Guide to 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.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.