Best’s News & Research Service - February 04, 2021 11:23 AM (EST)
AM Best Withdraws Credit Ratings of First Assurance Life of America, Performance Life of America and Versant Life Insurance Co
- February 04, 2021 11:23 AM (EST)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of First Assurance Life of America, Performance Life of America and Versant Life Insurance Company. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Baton Rouge, LA. Concurrently, AM Best has withdrawn these ratings as the companies have requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect the three entities’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
These companies underwrite credit life and credit accident & health products to support the Louisiana Dealers Services Group (LDS). Each one contributes capital to the LDS Group and have high quality asset portfolios. These entities also make small, but favorable, premium contributions to the overall group and are a source of net income.
Despite this, premium levels from these entities have diminished over the last five years and their investment yields remain low. While the property/casualty companies are major contributors of the group’s earnings, the group has additionally benefited from affiliated credit life earnings. LDS’ credit life subsidiaries have been historically profitable with low to high single digit returns. Credit life products in general tend to have very low loss ratios, which has allowed the LDS Group to further benefit from their inclusion.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.