FEBRUARY 08, 2017 11:29 AM (EST)
A.M. Best Upgrades Credit Ratings of Boston Mutual Life Insurance Company and Life Insurance Company of Boston & New York
|Keith Behrmann, CFA, CLU|
+1 908 439 2200, ext. 5733
Ken Johnson, CFA, FRM, CAIA
+1 908 439 2200, ext. 5056
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 08, 2017 11:29 AM (EST)
A.M. Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Boston Mutual Life Insurance Company (Canton, MA) and its subsidiary, Life Insurance Company of Boston & New York (Athol Springs, NY), which together are referred to as Boston Mutual Group (Boston Mutual). The outlook of these Credit Ratings (ratings) is stable.
The rating upgrades reflect the cumulative effort and financial performance of Boston Mutual over a period of time. Efforts to enhance Boston Mutual’s business profile over the past few years have included rebranding the organization, reorganizing its operational units and increasing management personnel, which have led to improvements in sales and profitability and are viewed positively by A.M. Best. During this time, Boston Mutual has maintained consistent, although modest, premium growth with only one negative year in the past decade. Additionally, stable operating earnings have supported significant growth in absolute and risk-adjusted capitalization.
Offsetting rating factors include the high level of competition in Boston Mutual’s core market segments which may challenge the company’s ability to sustain long-term growth trends, as evidenced by modest year-over-year premium growth. Additionally, performance of some ancillary products has varied and constrained the consolidated results.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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