Best’s News & Research Service - October 04, 2023 11:30 AM (EDT)
AM Best Revises Outlooks to Positive for Guarantee Trust Life Insurance Company
- October 04, 2023 11:30 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Guarantee Trust Life Insurance Company (Guarantee Trust Life) (Glenview, IL).
The Credit Ratings (ratings) reflect Guarantee Trust Life’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect Guarantee Trust Life’s enhanced financial flexibility and the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The level of risk-adjusted capitalization has improved as earnings have been accretive to capital, and growth in capital and surplus has outpaced the growth in net premiums written.
Guarantee Trust Life has experienced a long-term trend of favorable operating performance, which resulted from generally increasing pre-tax net operating gains driven by underwriting profitability in its core hospital indemnity and cancer segments, as well as growing sizable net investment income. Additionally, the company has reported strong return metrics with a five-year return on equity of 15.9% and a five-year return on revenue of 7.5%.
Partially offsetting factors include Guarantee Trust Life’s premium concentration in hospital indemnity products as more than one-third of net premium is derived from these products, as well as the highly competitive supplemental accident and health, and life insurance markets where it operates.
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.