Best’s News & Research Service - March 03, 2022 01:06 PM (EST)
AM Best Affirms Credit Ratings of Symetra Financial Corporation and Its Subsidiaries
- March 03, 2022 01:06 PM (EST)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of Symetra Life Insurance Company and its subsidiary, First Symetra National Life Insurance Company of New York (New York, NY), together referred to as Symetra Life Group. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term Issue Credit Rating (Long-Term IR) of Symetra Financial Corporation (Symetra). The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Bellevue, WA, unless otherwise specified.
The ratings reflect Symetra Life Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.
Symetra Life Group’s balance sheet strength is assessed at very strong, as measured by a combination of quantitative (Best’s Capital Adequacy Ratio [BCAR]) and qualitative measures with additional financial flexibility afforded by the ultimate parent, Sumitomo Life Insurance Company, which supports the group’s strategic initiatives. The ultimate parent has supported the operations through direct capital injections, as the company executes on new product development and enhanced distribution efforts. Profitability that negatively impacted the group in 2020 reversed, as anticipated, in 2021, with expectations of a more positive core operating profile going forward. Premium trends for the year remain strong, with top-line and bottom-line results supporting the company’s ratings profile. Premium growth for the group is supported through strong and diverse distribution channels along with continued and new partnerships supported by new product offerings. AM Best views Symetra’s risk management practices as being in line with the scope of the group’s operations, with a demonstrated ability to adjust during challenging environments. Going forward, AM Best anticipates that the group will continue to grow capital organically through profitable operating performance.
The following Long-Term IR has been affirmed with a stable outlook:
Symetra Financial Corporation—
— “bbb+” (Good) on $250 million 4.25% senior unsecured notes, due 2024
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.