APRIL 30, 2021 10:27 AM (EDT)
AM Best Upgrades Issuer Credit Ratings of New Era Life Insurance Company and Its Subsidiaries
|Shauna Nelson |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 30, 2021 10:27 AM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of New Era Life Insurance Company and its wholly owned life insurance subsidiaries, New Era Life Insurance Company of the Midwest and Philadelphia American Life Insurance Company. The outlook of the FSR has been revised to positive from stable while the outlook of the Long-Term ICR is positive. All companies are domiciled in Houston, TX, and collectively are known as New Era Group.
The ratings reflect New Era Group’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrades reflect the group’s improved capital position and overall balance sheet strength. New Era Group’s capital and surplus increased year over year and the group experienced a significant increase in capital and surplus over the past five years, reflecting the reliable and organic growth of the group. New Era Group maintains a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), for its insurance and investment risks. Mitigating the group’s balance sheet strength assessment is its relatively high concentration in mortgage loans concentrated in Texas, as well as a higher allocation to below investment grade bonds (primarily Class 3).
The positive outlooks reflect the business profile of New Era Group as the ratings could be positively impacted if the group’s business profile continues to improve by diversifying its product line and geographic footprint. New Era is concentrated geographically, writing a large percentage of its business in Texas. As a niche company providing consumer-centric products, New Era Group has benefited from long-standing relationships with consumers and the loyalty of its agents, as evidenced by its consistent premium growth.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.