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A.M. Best Affirms Credit Ratings of Louisiana Dealer Services Insurance Inc and Subsidiaries

September 28, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 28, 2018--A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Louisiana Dealer Services Insurance Inc (Baton Rouge, LA) and its five subsidiaries, collectively referred to as The LDS Group. The outlook of these Credit Ratings (ratings) is stable. See below for a detailed listing of subsidiaries.

The ratings reflect The LDS Group’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating affirmations of The LDS Group recognize its historical profitability, strong capitalization, and established market position as a vehicle service contract provider, mechanical breakdown insurer and credit life and credit disability insurer in Louisiana and Mississippi. The ratings also recognize each companies’ role within the group, and the purposes they serve in their respective states, as well as the same inherent benefits afforded by common management, marketing and shared services.

The group has consistently produced favorable underwriting results, which have been complemented by a stable level of investment income. A profitable overall earnings trend and relatively modest dividend requirements have contributed to surplus growth and a sustained solid level of risk-adjusted capitalization.

While recognizing the group’s solid capital position and consistent profitability, A.M. Best notes that growth within the enterprise depends upon the health and strength of the economy, specifically domestic auto sales. A.M. Best also notes that while auto sales have improved over the past few years, a potential decrease in consumer activity can adversely impact the associated opportunities to market these companies’ core credit products.

The stable outlooks reflect A.M. Best’s expectation that the company’s rating fundamentals will remain unchanged over the medium term.

Negative rating actions could occur if there is a material reduction in The LDS Group’s risk-adjusted capitalization. Negative rating action also could occur should operating performance deteriorate over a period of time. This may occur should underwriting standards decline, pricing becomes inadequate, or if claims frequency and severity trend upward.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-”, each with a stable outlook have been affirmed for the subsidiaries of Louisiana Dealer Services Insurance Inc:

First Assurance Life of America Loss Deficiency Surety Insurance Company, Inc. Performance Life of America Versant Casualty Insurance Company Versant Life Insurance Company

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180928005379/en/

CONTACT: A.M. Best

Alexander K. Sarfo

Senior Financial Analyst—P/C

+1 908 439 2200, ext. 5779

alexander.sarfo@ambest.com

or

Erik Miller, CFA

Senior Financial Analyst—L/H

+1 908 439 2200, ext. 5187

erik.miller@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA LOUISIANA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 09/28/2018 11:20 AM/DISC: 09/28/2018 11:20 AM

http://www.businesswire.com/news/home/20180928005379/en

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