Printer Friendly
The Free Library
23,403,340 articles and books


A.M. Best Affirms Ratings of the Kansas City Life Group of Companies.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Kansas City Life Insurance Company (Kansas City Life) (NASDAQ: KCLI) and its subsidiary, Sunset Life Insurance Company of America. Additionally, A.M. Best has affirmed the FSR of B++ (Good) and ICR of "bbb+" of Old American Insurance Company (Old American), the group's final expense life insurance subsidiary. The outlook for all ratings is stable. All companies are located in Kansas City, MO.

The ratings reflect the continued strengthening of the group's absolute and risk-adjusted capital positions, solid investment returns and strong statutory profitability. With no long-term debt, an investment portfolio predominately comprised of publicly traded investment grade bonds and access to borrowing facilities at favorable rates, Kansas City Life continues to maintain a strong liquidity profile. Additionally, Kansas City Life's primary distribution strategy of recruiting middle market general agents, along with its secondary distribution strategy focused on marketing agreements with non-life insurance carriers, has facilitated individual life sales growth.

Partially offsetting these positive rating factors are the overall declining trend in premium and deposits, its exposure to interest rate sensitivity due to its fixed deferred annuity balances without surrender charge protection and continued losses from the group insurance segment. In addition, Kansas City Life lacks sufficient scale in its accident and health lines, as well as in its variable life and annuity businesses. A.M. Best notes that, although Kansas City Life has introduced a guaranteed minimum withdrawal benefit for its variable annuity products, earnings from this line are not expected to be material over the near term. Additionally, Old American remains challenged to consistently grow new and renewal premiums, while minimizing the statutory strain from new business in order to ensure long-term capital growth.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Dec 7, 2007
Words:361
Previous Article:Mrs. Fields to Discuss Third Quarter Results on Conference Call.
Next Article:Genesis Bioventures Announces Name Change to Abviva, Inc.
Topics:



Related Articles
A.M. Best Assigns First-Time Ratings to Existing Debt Of Hartford Life; Insurance Ratings Affirmed.
A.M. Best Affirms A+ Ratings of The Great-West Life Assurance Co., London Life Insurance Co.
A.M. Best Affirms A -Excellent- Rating Of Empire Life Insurance Co.
A.M. Best Affirms Hartford Debt and Financial Strength Ratings.
A.M. Best Affirms Financial Strength and Debt Ratings for New York Life.
Independence Holding Company Announces Madison National Life Rating Upgrade to A- -Excellent- and Affirms Standard Security Life's A -Excellent-...
A.M. Best Affirms Ratings of Guardian Life and Its Subsidiaries; Revises Outlook to Positive.
A.M. Best Affirms Ratings of Americo Life, Inc. and Assigns Ratings to Its Subsidiaries.
A.M. Best Affirms Ratings of Delphi Financial Group, Inc. and its Subsidiaries.
A.M. Best Affirms Ratings of Aviva USA Corporation's Life Insurance Subsidiaries.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters