Best’s News & Research Service - May 30, 2014 02:47 PM (EDT)
A.M. Best Revises Outlook to Stable for Lewer Life Insurance Company
- May 30, 2014 02:47 PM (EDT)
Oldwick //BestWire// - A.M. Best has revised the outlook to stable from positive and affirmed the financial strength rating of B (Fair) and issuer credit rating of "bb+" of Lewer Life Insurance Company (Lewer Life) (Kansas City, MO).
The stable outlook reflects Lewer Life's lower operating earnings reported in 2013 and a net operating loss reported in the first quarter 2014 due to adherence with minimum loss ratio and rebate requirements of The Patient Protection and Affordable Care Act. A.M. Best believes the company's operating results could be adversely impacted further by these requirements in the short-to-medium term. Additionally, Lewer Life is primarily a reinsurer of international student health insurance business underwritten mainly by one carrier and marketed and administered chiefly by its affiliate, The Lewer Agency, Inc.
Positive rating actions may occur if Lewer Life generates and sustains substantially higher earnings trends, generates meaningful non-student insurance premium revenue and materially grows its absolute level of capital. Alternatively, negative rating actions may occur if the company's earnings decline further or net premium revenue and/or capitalization levels materially deteriorate.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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