AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of 5 Star Life Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 5, 2018--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of 5 Star Life Insurance Company (5 Star Life) (Lincoln, NE). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect 5 Star Life’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect the continued financial and operational support of its parent, Armed Forces Benefit Association (AFBA).
5 Star Life has reported improving trends in earnings and capital that are in-line with expectations to return to profitability in the near term. Additionally, improved performance supports growth in total capital and the maintenance of risk-adjusted capitalization in the strongest category, according to Best’s Capital Adequacy Ratio. The improved performance is related primarily to the company’s shift from high strain final expense products to worksite products, which have lower statutory strain and shorter breakeven periods, as well as the active management of expenses to support sustainable profitability going forward.
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 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 AM Best press releases, please view .
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: Keith Behrmann
Senior Financial Analyst
+1 908 439 2200, ext. 5733
+1 908 439 2200, ext. 5892
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: AM Best
Copyright Business Wire 2018.
PUB: 12/05/2018 02:47 PM/DISC: 12/05/2018 02:47 PM