Best’s News & Research Service - October 05, 2023 05:31 PM (EDT)
AM Best Assigns Credit Ratings to TruSpire Retirement Insurance Company
- October 05, 2023 05:31 PM (EDT)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to TruSpire Retirement Insurance Company (TruSpire) (Irving, TX). The outlook assigned to these Credit Ratings (ratings) is stable. TruSpire is a newly formed entity under Mutual of America Life Insurance Company (MoA), which is the ultimate parent.
The ratings reflect TruSpire’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
MoA closed on the Landmark Life Insurance Co. acquisition in January 2023, and renamed the entity TruSpire. MoA has plans to execute new annuity business through this acquired Texas legal entity. This business includes individual annuities and Pension Risk Transfer annuities. The risk-adjusted capitalization is projected to stay within the strongest level throughout the next few years, according to the Best’s Capital Adequacy Ratio (BCAR), with explicit capital support from MoA to support the growth of the organization. The new company will share a common management team, administration and risk management program. TruSpire will administer products on the EXL service and operational platform, which is committed to building competitive fixed indexed annuity products.
TruSpire’s first fixed indexed annuity product suite is expected to launch in early first-quarter 2024. There is a high degree of competition currently in the market, making successful growth in scale much more difficult than ever before, with distribution focused on attracting dedicated independent agents with competitive compensation. AM Best will closely monitor the newly created organization to make sure it is meeting the projected targets successfully.
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.