A.M. Best Upgrades Issuer Credit Rating of Guarantee Trust Life Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--Jul 13, 2018--A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Guarantee Trust Life Insurance Company (GTL) (Glenview, IL). The Credit Rating (rating) outlook for the Long-Term ICR has been revised to stable from positive, while the outlook for the FSR remains stable.
The ratings reflect GTL’s balance sheet strength assessment, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
GTL’s rating upgrade is attributed to its very strong risk-adjusted capital measures, its solid use of reinsurance to mitigate risk exposure and conservative investment strategies to maximize lower risk returns. The reported operating earnings trend has been favorable for several years. This trend was driven by its solid returns from its accident and health product lines; however, the consolidated premium trend has been flat following a loss of large producing agent in 2015. A.M. Best notes that GTL is working to grow sales through existing and new distribution channels. A.M. Best expects the favorable earnings trends to continue through the medium term as the company improves its product distribution through its developing relationships among various sales partnerships. GTL is a niche player in the supplemental life and health markets, offering various products aimed at the senior markets, and is one of the leaders in the rapidly growing hospital indemnity market. The company has some concentration of business geographically and is operating in the increasingly competitive senior marketplace.
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 .
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CONTACT: A.M. Best
Wayne Kaminski, +1 908 439 2200, ext. 5061
Senior Financial Analyst
Christopher Sharkey,+1 908 439 2200, ext. 5159
Manager, Public Relations
Sally Rosen, +1 908 439 2200, ext. 5280
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 07/13/2018 11:45 AM/DISC: 07/13/2018 11:45 AM