Business & Finance
Thu, September 16, 2010Wed, September 15, 2010Tue, September 14, 2010Mon, September 13, 2010Sun, September 12, 2010Fri, September 10, 2010Thu, September 9, 2010Wed, September 8, 2010Tue, September 7, 2010Mon, September 6, 2010Sat, September 4, 2010Fri, September 3, 2010Thu, September 2, 2010Wed, September 1, 2010Tue, August 31, 2010Mon, August 30, 2010A.M. Best Assigns Ratings to American Retirement Life Insurance Company
Published in Business and Finance on Wednesday, September 8th 2010 at 12:26 GMT by Market Wire
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of abbb+a to American Retirement Life Insurance Company (ARLIC), a subsidiary of Loyal American Life Insurance Company (Loyal) (Cincinnati, OH), which in turn is indirectly owned by Great American Financial Resources, Inc. (GAFRI), a wholly owned subsidiary of American Financial Group, Inc. (NYSE: AFG). The outlook assigned to both ratings is stable.
"Risk Management and the Rating Process for Insurance Companies"
The rating action on ARLIC reflects the benefits it receives from the financial strength and operating profile of GAFRI, which provides administrative expertise and expanded distribution capacity for the future growth of the companya™s product lines. In addition, the rating considers the quality of ARLICa™s investment portfolio, which is focused on publicly traded, investment grade, fixed income securities.
A.M. Best remains concerned that the individual health business, primarily Medicare supplement coverage, will make up the majority of ARLICa™s future premium income and expose the company to the considerable regulatory and competitive pressures associated with this business.
The principal methodology used in determining these ratings is [ Besta™s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Besta™s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aRisk Management and the Rating Process for Insurance Companiesa; aUnderstanding BCAR for Life and Health Insurersa; a[ Rating Members of Insurance Groups ]a; and a[ Rating New Company Formations ].a Methodologies can be found at [ www.ambest.com/ratings/methodology ].
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit [ www.ambest.com ].
