AP NEWS

A.M. Best Withdraws Credit Ratings of Zale Life Insurance Company

July 10, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Jul 10, 2018--A.M. Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Zale Life Insurance Company (Zale Life) (Phoenix, AZ). The outlook of these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.

The ratings reflect Zale Life’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, very limited business profile and appropriate enterprise risk management.

Zale Life’s ratings also reflect its solid level of risk-adjusted capitalization, strong liquidity and the high credit quality of its investment portfolio. Offsetting rating factors include a very limited business profile and the immaterial levels of net premiums due to high utilization of an offshore reinsurance affiliate. Zale Life has discontinued writing its credit insurance products, which dramatically diminishes its future business and long-term profitability prospects.

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 the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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/20180710005955/en/

CONTACT: A.M. Best

Jason MacKenzie

Financial Analyst

+1 908 439 2200, ext. 5649

jason.mackenzie@ambest.com

or

Rosemarie Mirabella

Director

+1 908 439 2200, ext. 5892

rosemarie.mirabella@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 NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 07/10/2018 02:42 PM/DISC: 07/10/2018 02:42 PM

http://www.businesswire.com/news/home/20180710005955/en

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