A.M. Best Assigns Issuer Credit Ratings to Forethought Life Insurance Company and Forethought Life Assurance Company.OLDWICK, N.J. -- A.M. Best Co. 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-" and affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A- (Excellent) of Forethought fore·thought n. 1. Deliberation, consideration, or planning beforehand. 2. Preparation or thought for the future. See Synonyms at prudence. Life Insurance Company (FLIC FLIC - Functional Language Intermediate Code. An intermediate language used in the Chalmers LML compiler. ["FLIC - A Functional Language Intermediate Code", S. Peyton Jones <simonpj@dcs.gla.ac.uk> et al, RR 148, U Warwick, Sep 1989]. ) and its affiliate, Forethought Life Assurance Company (FLAC (Free Lossless Audio Codec) An audio compression technology from the Xiph.Org Foundation (www.xiph.org). It is a royalty-free codec used to compress CD audio files to at least 50% of their original size (2:1 ratio). ) (both of Batesville, IN). The outlook assigned to the ICRs is stable, and the outlook for the FSR is stable. The rating affirmation reflects FLIC's leading market position within the pre-need life insurance industry, the new business growth resulting from its multiple distribution channels, expanded annuity marketing activity and adequate risk-adjusted capitalization further supported by additional capital contributions from its parent company, Forethought National Life Insurance Company. Offsetting these factors are FLIC's continued low level of earnings due to rapid new business growth, the challenges as it diversifies into the highly competitive and interest sensitive indexed annuity market and the high level of intangibles and financial leverage that exists at FLIC's ultimate parent company, Forethought Financial Group, Inc. FLAC's rating affirmation acknowledges its continued profitable closed book of business, strong persistency and predictable mortality experience within the block of business reinsured from FLIC and Arkansas National Life Insurance Company (ANLIC) (Little Rock, AR). Offsetting these factors is the closed block nature of the business and ongoing dividend requirements needed to service debt at FLAC's intermediate holding company. A.M. Best has withdrawn the FSR of B++ (Good) and assigned a category NR-5 (Not Formally Followed) to FLIC's formerly wholly owned life insurance subsidiary, ANLIC. This rating action is due to the merger of ANLIC into FLIC on December 31, 2007. 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 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. |
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