OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Standard Security Life Insurance Company of New York (SSL) (New York, NY). SSL is a subsidiary of Independence Holding Company (IHC) (headquartered in Stamford, CT) [NYSE: IHC]; the ratings of IHC and its other insurance subsidiaries remain unchanged.
This rating action follows the announcement that IHC has signed a definitive agreement to sell SSL to Reliance Standard Life Insurance Company (RSL), a subsidiary of Tokio Marine Holdings Inc., for approximately $180 million.
At year-end 2020, SSL had statutory capital and surplus totaling $64.6 million and net premiums written of $114.6 million. Under the terms of the agreement, at the close of the transaction, IHC will transfer SSL to RSL with $53 million of capital; any excess amount will be returned to IHC as a dividend. SSL's primary operations consist of New York statutory disability benefit law (DBL) business and Paid Family Leave (PFL), and will be used to fill out RSL’s existing group insurance operations and market share in New York. It is anticipated that some non-related annuity and other accident & health reserves will be co-insured out prior to the closing.
The ratings will remain under review while AM Best discusses the details of the acquisition with company management and until the transaction closes. The companies are looking to complete the transaction in the third quarter of 2021, following regulatory approval.
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