Best’s News & Research Service - March 01, 2023 02:00 PM (EST)
AM Best Revises Outlooks to Stable for American Life & Security Corp.
- March 01, 2023 02:00 PM (EST)
Oldwick //BestWire// - AM Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of American Life & Security Corp. (American Life) (headquartered in Lincoln, NE).
The Credit Ratings (ratings) reflect American Life’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The stable outlooks reflect the expectation that the company will maintain its overall balance sheet assessment, supported by appropriate levels risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as the company grows. AM Best also expects that the company will continue to maintain a projected positive trajectory in operating performance and continue to enhance its position in its domestic market as it continues to execute its business plan. More recently, there has been a trend of decreasing capital and some increased leverage due to the utilization of a bank credit facility.
The balance sheet strength assessment of strong factors American Life’s capital plan and the high use of reinsurance agreements, even though there is a collateralized trust to support the reinsurance arrangements. For the most part, the technology-enabled life/annuity carrier has outperformed its financial targets in recent years, with 2021 the lone exception; trends for 2022 are modest as the company continues to obtain additional dedicated reinsurance partners as planned. AM Best believes that American Life will continue to focus on the execution of the company’s previously developed strategy, which includes a sustainable upward trajectory trend in operating performance, supported by internal capital generation. AM Best will continue to monitor results closely against future growth projections.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.