Best’s News & Research Service - April 16, 2020 12:27 PM (EDT)
AM Best Withdraws Credit Ratings of U.S. Financial Life Insurance Company
- April 16, 2020 12:27 PM (EDT)
Oldwick //BestWire// - AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-” of U.S. Financial Life Insurance Company (USFL) (Phoenix, AZ). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect USFL’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Effective April 1, 2020, USFL was acquired by Heritage Life Insurance Company (HLIC) from AXA Equitable Holdings, Inc. USFL was placed in runoff in 2007, and HLIC has indicated that it does not anticipate writing new business out of the entity. Risk-adjusted capitalization remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), but operating performance continues to contract as business runs off.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.