OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Funeral Directors Life Insurance Company (FDLIC) (Abilene, TX). Concurrently, AM Best has upgraded the FSR to A- (Excellent) from B+ (Good) and the Long-Term ICR to “a-” from “bbb-” of Kentucky Funeral Directors Life Insurance Company (KFDLIC) (Lexington, KY), which is wholly owned by FDLIC. The outlook of these Credit Ratings (ratings) remains stable.
The ratings of FDLIC and KFDLIC reflect the companies’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlooks primarily reflect the strengthening of FDLIC’s ERM program. FDLIC has worked over the past 12 months to increase formalization of its risk management practices, including the addition of a dedicated chief risk officer role and further strengthening of cyber risk management practices. AM Best expects the company to further develop and embed its existing risk management practices going forward. The ratings of FDLIC and KFDLIC also reflect their risk-adjusted capital positions being at the strongest level, favorable operating results, good market positions and extensive expertise in the funeral home business. The group continues to post steady earnings, which have strengthened capital over time without using leverage or reinsurance.
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