Best’s News & Research Service - September 23, 2008 03:51 PM (EDT)
A.M. Best Affirms Ratings of Service Life & Casualty Insurance Company
OLDWICK, N.J. //BestWire// - A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of Service Life & Casualty Insurance Company (Service Life & Casualty) (Austin, TX). The outlook for both ratings is stable.
The rating affirmations reflect Service Life & Casualty’s adequate level of capitalization on both a risk-adjusted and absolute basis, its continued positive—albeit fluctuating—earnings performance and its niche marketing presence in the credit insurance business in Texas.
Offsetting rating factors include the company’s fluctuating credit insurance premiums, its high level of alternative investments, such as real estate, mortgage loans and other illiquid asset classes relative to its capital position, and its narrow business profile in the auto-related credit insurance business.
Given the uncertain economic environment, A.M. Best will closely monitor Service Life & Casualty’s investment allocation and premium trends in the credit insurance market.
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