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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 16, 2015 03:34 PM (EST)
A.M. Best has removed from under review with developing implications and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” for Colorado Bankers Life Insurance Company (Colorado Bankers) (Charlotte, NC). The outlook assigned to both ratings is stable.
This rating action follows the close of the acquisition of Colorado Bankers by SNA Capital, LLC (Durham, NC), a member of the Eli Global family of companies, from Dearborn National Life Insurance Company, whose ultimate parent is Health Care Service Corporation. The transaction closed on Dec. 1, 2015. Eli Global is a privately held group of companies whose insurance operations were established in 2014 through the acquisition of Southland National Insurance Corporation and expanded with the acquisition of Colorado Bankers.
The affirmation of the ratings of Colorado Bankers reflects the company’s favorable operating trends, strong level of risk-adjusted capital and its strategic importance as the core insurance entity for the insurance operations of Eli Global. Colorado Bankers mainly markets worksite and individual life, annuity and accidental and health products. The company is licensed in 49 states and has a well-established distribution structure. The company has reported top-line and bottom-line growth over the last three years based on good persistency, growing new sales, stable loss ratios and improved investment income. Colorado Bankers is to be the core insurance entity and primary source of premium revenue for Eli Global’s insurance operations going forward. It is anticipated that through integration and cost sharing with affiliated Eli Global companies, Colorado Bankers will reduce its relatively high administrative costs. Although there is integration risk, favorable operating results are projected to continue in the near term.
A.M. Best will continue to monitor Colorado Bankers for business profile changes related to business strategy, new product or markets; balance sheet impacts for changes in investment allocation or capital management practices; operational performance; and enterprise risk management program expansion.
Positive rating movement could occur if Colorado Bankers reports substantial margin expansion, its business becomes considerably more diversified or reports material top-line growth while maintaining a high level of risk-adjusted capital. Conversely, negative rating movement could occur if Colorado Bankers reports a trend of unfavorable operating results for its core worksite business or if there is a significant deterioration of its risk-adjusted capital.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.
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