Best’s News & Research Service - June 09, 2017 02:23 PM (EDT)
A.M. Best Revises Issuer Credit Rating Outlook to Positive for Guarantee Trust Life Insurance Company
- June 09, 2017 02:23 PM (EDT)
Oldwick //BestWire// - A.M. 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” of Guarantee Trust Life Insurance Company (GTL) (Glenview, IL). The Credit Rating (rating) outlook for the FSR remains stable.
The revised Long-Term ICR outlook reflects GTL’s strong risk-adjusted capitalization levels, its position as a niche player in the senior market and trend of favorable operating gains. GTL’s risk-adjusted capitalization has strengthened over the medium term through the accretion of growing net operating results in nearly all lines of business and was augmented by a steady stream of growing net investment income. The company has exhibited strong core competencies marketing products aimed at the senior market space. Net earnings have been favorable and reflect its operating performance over the long term in its core agency accident & health (A&H) business segment. A.M. Best expects GTL to continue demonstrating organic earnings growth with its focused plan to introduce new products and expand its business profile while maintaining favorable underwriting results and stable investment performance.
Conversely, offsetting rating factors include a disruption of its distribution channels and degree of premium concentration in A&H insurance coverage. The company’s decision to terminate its largest producer has resulted in a loss of premium; however, there is favorable progress in growing premium through the introduction of new innovative supplemental and life products. A.M. Best expects the company to continue executing its business strategy of premium growth and refining operating efficiencies.
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