A.M. Best Affirms Minnesota Life's Financial Strength and Debt Ratings; Assigns Issuer Credit Rating.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings of A+ (Superior) of Minnesota Life The Minnesota Life Insurance Company was founded in St. Paul, Minnesota in 1880 as a mutual insurance company. It was originally organized as a mutual because a general distrust of stockholder-owned businesses prevailed at that time and there was a shortage of people willing to buy Insurance Company (St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , MN) and its strategic subsidiary, Northstar Life Insurance Company (Ithaca, NY). In addition, A.M. Best has affirmed the financial strength rating of A (Excellent) of Securian Life Insurance Company (St. Paul, MN), an affiliate of Minnesota Life. Concurrently, A.M. Best has assigned an issuer credit rating (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa" and has affirmed the debt rating of "a+" on the $125 million 8.25% existing surplus notes due September 2025 of Minnesota Life. All ratings have a stable outlook. Minnesota Life's debt-to-capital ratio remains within the range for its ratings, and the company maintains a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. fixed coverage ratio to service its outstanding debt. The ratings reflect Minnesota Life's diversified business lines and earnings sources, its established distribution channels, profitable operations, strong balance sheet and favorable risk-adjusted capitalization. The ratings also acknowledge the conservative business strategies, effective asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. and the efforts to maintain a competitive edge in a challenging market. Offsetting these strengths are the earnings volatility experienced in its core product lines in recent years, coupled with the ongoing competitive pressure faced in these business lines. Minnesota Life's improved operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before results are reflective of increased revenue in many of its core business lines, its conservative financial and expense management strategies and improved focus on increasing scale and distribution. This includes the acquisition of Allied Solutions, in addition to strategic alliances and consolidations in the company's niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . The company's recent announcement of its consolidation of its individual annuity and retirement plan businesses into one strategic unit called Securian Retirement Savings will offer opportunities for greater economies of scale, which will make the group more competitive in the insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. A.M. Best expects Minnesota Life's continued efforts to increase scale and distribution--while continuing to manage expense efficiencies--will help generate more consistency in earnings going forward. Minnesota Life is a well-established and respected competitor in its major businesses, creating a strong operating profile in these select segments. A.M. Best believes Minnesota Life will continue to generate consistent operating returns by implementing sustainable strategies in its core business lines and by continuing to manage the company with a high level of conservatism. For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,100 individual life/health companies and A.M. Best groups, please visit http://www.ambest.com/lh. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion