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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 15, 2006 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating to B++ (Very Good) from B+ (Very Good) of The Baltimore Life Insurance Company (BLIC) (Owings Mills, MD). The rating outlook is stable.
This rating action reflects BLIC's enhanced capital strength, profitable statutory operating results and the implementation of new initiatives to improve its business profile. Over the past three years, BLIC has demonstrated significant improvement in its statutory capital and surplus position, with statutory capital increasing 84% since year-end 2002. Among the factors that helped improve its risk-adjusted capital were positive statutory earnings, improvement of the credit quality in its investment portfolio and reduced expense levels. In addition, BLIC has developed a more focused operating strategy to manage new business strain among a select number of core business lines, while exiting unprofitable segments. A.M. Best expects BLIC to maintain its stronger surplus position as it expands into its targeted market segments.
Partially offsetting these strengths are its narrow business profile, modest GAAP operating results and challenges in growing new business in the highly competitive final expense market.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit Best's Life/Health Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.