AM Best Affirms Credit Ratings of American Life & Security Corp.
February 15, 2022 by AM Best
Oldwick //BestWire// – AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of American Life & Security Corp. (American Life) (headquartered in Lincoln, NE). The outlook of these Credit Ratings (ratings) is positive.
The ratings reflect American Life’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlooks reflect a continued further improvement in American Life’s balance sheet strength metrics, especially financial flexibility, along with AM Best’s expectation that the company’s risk-adjusted capitalization will remain at the strongest level in the near term, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best also expects that the company will continue its upward trajectory in operating performance, supported by strong internal capital generation, and further enhance its domestic market position as it executes its strategic business plan.
The balance sheet strength assessment of strong also takes into account American Life’s conservative investment strategy and the high use of reinsurance agreements, even though there is a collateralized trust to support the reinsurance arrangements. For the most part, the technology–enabled life/annuity carrier has outperformed its financial targets over the past two years, except for 2020 when it fell a bit short; the early trends are still considered fairly modest as the company continues to obtain additional dedicated reinsurance partners as planned. AM Best believes that American Life will continue to focus on the execution of the company’s previously announced strategy despite the senior management changes, and expects the company to have, as planned, an upward trajectory in operating performance, supported by strong internal capital generation. AM Best will continue to monitor results closely against future growth projections.
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.
