Business & Finance
Thu, June 16, 2011Wed, June 15, 2011Tue, June 14, 2011Mon, June 13, 2011Fri, June 10, 2011Thu, June 9, 2011Wed, June 8, 2011Tue, June 7, 2011Mon, June 6, 2011Sun, June 5, 2011Sat, June 4, 2011Fri, June 3, 2011Thu, June 2, 2011Wed, June 1, 2011Tue, May 31, 2011A.M. Best Upgrades Ratings of Presidential Life Insurance Company and Presidential Life Corporation
Published in Business and Finance on Wednesday, June 8th 2011 at 13:20 GMT by Market Wire
OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer credit rating (ICR) to abbba from abbb-a of Presidential Life Insurance Company (Presidential Life) (Nyack, NY). A.M. Best also has upgraded the ICR to abba from abb-aof the parent company, Presidential Life Corporation (NASDAQ: PLFE). The outlook for all ratings is stable.
"Risk Management and the Rating Process for Insurance Companies"
The rating upgrades reflect Presidential Lifea™s solid capitalization, profitable earnings achieved through strong, albeit volatile, investment income, resolution of litigation issues from prior management and shareholder proxy issues, along with a future business strategy underpinned by growth, which builds on the companya™s core competencies within the retail insurance annuity business segment.
Partially offsetting these positive rating factors is Presidential Lifea™s concentrated market profile operating as a mono-line insurer writing predominantly fixed annuity business in a limited geographic area with a narrow product offering, continued future investment income volatility due to exposure to the limited partnership investment asset class and execution risks associated with the companya™s expansion plans.
Despite these concerns, Presidential Lifea™s outlook is reflective of managementa™s ability to manage the companya™s continued elevated investment risk profile, improving capitalization and A.M. Besta™s expectation that solid operating performance will be sustained over the near to medium term and will contribute to organic surplus growth.
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; and aAssessing Country Risk.a Methodologies can be found at [ www.ambest.com/ratings/methodology. ]
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].
Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
