AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb+" of American Life & Security Corp. (American Life) (headquartered in Lincoln, NE).
The ratings reflect American Life’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlooks reflect an overall improvement in the balance sheet strength metrics, especially financial flexibility, with the recent raise of additional capital through its public offering by Midwest Holding Inc., along with an expectation of risk-adjusted capitalization remaining at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), in the near term. AM Best's also expects that the company will continue its upward trajectory in operating performance, supported by strong internal capital generation, and enhance its position in its domestic market as it executes its business plan.
The balance sheet strength assessment of strong also takes into account American Life’s conservative investment strategy 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 over the past two years, but early trends are still considered fairly modest as the company continues to obtain additional dedicated reinsurance partners as planned. The ratings reflect AM Best’s view that the group will continue to make additional progress with its strategic business plan. AM Best will continue to monitor results against future growth projections.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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