A.M. Best Affirms and Assigns Ratings to Cardif Life Insurance Company.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and assigned an issuer credit rating of "bbb" to Cardif Life Insurance Company (Cardif Life) (formerly known as Financial American Life Insurance Company) (Miami, FL). The outlook for both ratings is stable. The ratings of Cardif Life reflect the support it receives from its parent company, Cardif Holdings, Incorporated, a member of the BNP Paribas S BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. .A. Group [Paris: BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. .PA], which is based in Paris, France. While absolute capital and surplus levels have fluctuated in recent years, Cardif Life has been able to maintain an adequate level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. model (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), for its present level of insurance and investment risks. However, this is solely due to capital contributions from its parent company, as Cardif Life has reported sizeable statutory operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for many years, which is primarily due to the statutory strain of new business. While the trend in premium production has been favorable in recent years as the company continues to penetrate its core credit insurance market, Cardif Life maintains a limited product portfolio with a geographic concentration in a limited number of states. However, Cardif Life has recently had some success in contracting with new producers, as well as regional banks and consumer finance companies to distribute its products, which should enhance its business profile. A.M. Best expects statutory losses to continue for the foreseeable future and will be monitoring Cardif Life's ability to generate statutory profitability, as well as new business since demand for credit insurance products has been waning in certain markets in recent years. For 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 www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the 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. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion