AM Best Revises Issuer Credit Rating Outlook to Positive for ELCO Mutual Life and Annuity
- August 19, 2026 03:27 PM (EDT)
//BestWire// - 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 ICR of “bbb” (Good) of ELCO Mutual Life and Annuity (ELCO) (Lake Bluff, IL). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect ELCO’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The primary driver behind the revision of the Long-Term ICR outlook to positive from stable is ELCO’s improved balance sheet strength metrics, attributed to a long history of consistent operating earnings from the strength of its competitive position within the Medicaid Compliant Annuity market. ELCO maintains strong liquidity metrics and adequate regulatory capitalization levels and is expected to continue to grow its balance sheet through organic operating performance. Although the company has an elevated reinsurance risk profile, its dependency on reinsurance has decreased over time and its risk-adjusted capitalization remains strong, as measured by Best’s Capital Adequacy Ratio (BCAR), despite strain from high annuity production in recent years. Deposit-type contracts and assets are expected to continue to expand in the near future.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.