AM Best Affirms Credit Ratings of Ameritas Life Insurance Corp. and Its Subsidiary
May 15 2024 - 12:35PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings of “a+”
(Excellent) of Ameritas Life Insurance Corp. (Lincoln, NE) and
Ameritas Life Insurance Corp. of New York (New York, NY). These
insurance entities comprise the life/health operations of Ameritas
Mutual Holding Company (all companies are collectively referred to
as Ameritas). Concurrently, AM Best has affirmed the Long-Term
Issue Credit Rating (Long-Term IR) of “a-” (Excellent) of the
group’s surplus notes (see below for details of the Long-Term IR).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Ameritas’ balance sheet strength, which AM
Best assesses as very strong, as well as its adequate operating
performance, favorable business profile and appropriate enterprise
risk management.
Ameritas’ risk-adjusted capitalization level is consistently in
the strongest category, as measured by Best’s Capital Adequacy
Ratio (BCAR) and is supported by favorable financial flexibility
and liquidity. However, AM Best notes that Ameritas has elevated
allocations to NAIC-2 class bonds and less liquid private placement
fixed-income securities, while maintaining a material but declining
allocation to mortgage loans.
Ameritas has reported a trend of positive earnings on both a
statutory and GAAP basis in recent years, benefiting from a diverse
product portfolio covering life, annuity, and accident and health
products on an individual and group basis.
Ameritas has maintained a market-leading position in group
dental sales and continues to have strong life, annuity and
individual disability sales in recent years. Ameritas has
demonstrated appropriate risk management capabilities.
The following Long-Term IR has been affirmed with a stable
outlook:
The Union Central Life Insurance Company (merged into Ameritas
Life Insurance Corp., effective July 1, 2014)— -- “a-”
(Excellent) on $50 million 8.20% surplus notes, due 2026
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. For more information,
visit www.ambest.com.
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Louis Silvers Senior Financial Analyst +1 908
882 2316 louis.silvers@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Wayne Kaminski Associate Director +1 908 882
1916 wayne.kaminski@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com