A.M. Best Affirms Ratings of F&G Life and Affiliates; Assigns Issuer Credit Ratings.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) of Fidelity and Guaranty Life Insurance Company (F&G Life) (Baltimore, MD) and its wholly-owned subsidiary, Fidelity and Guaranty Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (F&G Life NY) (Purchase, NY). Concurrently, A.M. Best has assigned issuer credit ratings (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 "a+" to both companies. Additionally, A.M. Best has affirmed the financial strength rating of A- (Excellent) of Americom Life & Annuity Insurance Company (Americom Life) (Houston, TX) and has assigned an ICR of "a-". All ratings have a stable outlook. These companies are the main U.S. operating subsidiaries of Old Mutual plc (United Kingdom), an international 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. group with operations in the United Kingdom and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . The ratings of F&G Life reflect this organization's niche in the individual annuity market where it is a fixed and equity-indexed annuity equity-indexed annuity A contract with an insurance company that promises periodic payments keyed in a specified manner to a stock market index. Unlike variable annuities, equity-indexed annuities specify a guaranteed minimum return that is typically 3%. market leader. The company has generated strong annuity sales reflecting its favorable position Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" in the managing general agents distribution channel. The ratings also reflect Old Mutual plc's commitment to this market through its financial and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. support of F&G Life, which allows it to sustain strong sales volumes, maintain adequate capitalization, further diversify distribution sources and continue to grow its term life segment. F&G Life has posted significant statutory losses over recent years due to strong new business growth. Although Old Mutual plc has consistently injected capital into F&G Life, capitalization remains only adequate. However, A.M. Best believes that F&G Life will have access to future capital injections from Old Mutual plc as necessary to support its strategic initiatives. In noting F&G Life's significant growth in equity-indexed annuities, A.M. Best acknowledges the company's prudent product design and customer profiles, effective hedging programs and active market conduct and compliance programs. However, A.M. Best remains wary over the potential declines in the industry's equity-indexed annuity sales given the increasing due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. demanded to comply with the prevailing heightened regulatory environment. For Best's Ratings, 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 http://www.ambest.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion