Best’s News & Research Service - January 25, 2017 03:50 PM (EST)
A.M. Best Assigns Credit Ratings to Enterprise Life Insurance Company
- January 25, 2017 03:50 PM (EST)
Oldwick //BestWire// - A.M. Best has assigned a Financial Strength Rating (FSR) of B+ (Good) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” to Enterprise Life Insurance Company (ELIC). The outlook assigned to these Credit Ratings (ratings) is positive. ELIC is a direct subsidiary of Freedom Life Insurance Company of America (FLICA) and wholly owns National Foundation Life Insurance Company (NFLIC), which are collectively referred to as USHEALTH Group. Concurrently, A.M. Best has affirmed the FSR of B+ (Good) and the Long-Term ICRs of “bbb-” for FLICA and NFLIC. The outlook of these ratings remains positive. All companies are domiciled in Fort Worth, TX.
The ratings of ELIC reflect its adequate risk-adjusted capitalization, significant capital and premium growth and its strategic importance to USHEALTH Group as it assumes a substantial amount of premiums from other group members. Offsetting rating factors include inconsistent, although generally favorable, earnings driven by fluctuating underwriting results. In addition, ELIC has a limited business profile, as it does not generate direct premium.
The ratings of FLICA and NFLIC reflect good risk-adjusted capitalization, consistently positive underwriting and operating results, and robust profitable growth in the targeted Patient Protection and Affordable Care Act (ACA) exempt medical products segment. While the forthcoming repeal of the ACA may change the market demand for exempt products, USHEALTH Group companies can easily adjust their products if needed.
Additionally, the positive outlooks reflect A.M. Best’s opinion that the USHEALTH Group is well-positioned to achieve and support future profitable growth. Partially offsetting these positive rating factors are growing competitive pressure in the ACA-exempt product space and USHEALTH Group’s increased reliance on a line of credit to pay agent commission advances.
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.
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