OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of American Life & Security Corp. (American Life) (headquartered in Lincoln, NE).
The Credit Ratings (ratings) reflect American Life’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The stable outlooks reflect the expectation that the company will maintain its overall balance sheet assessment, supported by appropriate levels risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as the company grows. AM Best also expects that the company will continue to maintain a projected positive trajectory in operating performance and continue to enhance its position in its domestic market as it continues to execute its business plan. More recently, there has been a trend of decreasing capital and some increased leverage due to the utilization of a bank credit facility.
The balance sheet strength assessment of strong factors American Life’s capital plan and the high use of reinsurance agreements, even though there is a collateralized trust to support the reinsurance arrangements. For the most part, the technology-enabled life/annuity carrier has outperformed its financial targets in recent years, with 2021 the lone exception; trends for 2022 are modest as the company continues to obtain additional dedicated reinsurance partners as planned. AM Best believes that American Life will continue to focus on the execution of the company’s previously developed strategy, which includes a sustainable upward trajectory trend in operating performance, supported by internal capital generation. AM Best will continue to monitor results closely against future growth projections.
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