Best’s News & Research Service - July 07, 2022 04:20 PM (EDT)
AM Best Removes From Under Review With Developing Implications, Affirms Credit Ratings of American National Ins Co and Subs
- July 07, 2022 04:20 PM (EDT)
Oldwick //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of American National Insurance Company (ANICO) and its life/health subsidiaries, American National Life Insurance Company of Texas, American National Life Insurance Company of New York (Glenmont, NY) and Standard Life and Accident Insurance Company. These companies are referred to collectively as the American National Group (ANG). Concurrently, AM Best has removed from under review with developing implications and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Garden State Life Insurance Company (GSL).
In addition, AM Best has removed from under review with developing implications and affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of American National Property and Casualty Company (Springfield, MO), and its subsidiaries, American National General Insurance Company (Springfield, MO); ANPAC Louisiana Insurance Company (Baton Rouge, LA); American National Lloyds Insurance Company; Pacific Property and Casualty Company (Los Angeles, CA); and its affiliates, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). These entities are all considered part of American National Property & Casualty Group due to their strategic importance. These companies are property/casualty subsidiaries of ANICO, which is a subsidiary of American National Group, Inc. (American National) [NASDAQ: ANAT].
The outlook assigned to these Credit Ratings (ratings) is stable. All the above companies are headquartered in Galveston, TX, unless otherwise noted.
The ratings have been removed from under review with developing implications following the close of the sale of American National to Brookfield Asset Management Reinsurance Partners Ltd. (BAMRe), which occurred on May 25, 2022.
The ratings of ANG reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). AM Best anticipates that the balance sheet strength, anchored by its strongest level of risk-adjusted capitalization, will continue to be maintained at this level under management by its new parent, BAMRe. Additionally, the company will benefit from its new parent’s additional flexibility. ANG will continue to operate in its current structure benefiting from its knowledgeable management team and provide BAMRe with diversity in the U.S. market.
The ratings of ANPAC Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. Similarly to ANG, the property and casualty operations are expected to maintain its strongest level of risk-adjusted capitalization while benefiting from investment management and reinsurance expertise under its new parent. Given its good risk management and modeling capabilities, the company has historically reported a steady stream of earnings and provides diversity of both product and a geographic footprint throughout the United States.
The ratings of GSL reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate ERM. GSL will continue to manage its closed blocks of business as well as recently issued Medicare supplement business.
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.