D&P: RELIANCE STANDARD LIFE INSURANCE COMPANY, FIRST RELIANCE STANDARD LIFE INSURANCE COMPANY OF NEW YORK CLAIMS PAYING ABILITY RATING 'AA-'
CHICAGO, Dec. 6 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of Reliance Standard Life Insurance Company (Reliance Standard) at 'AA-' (Double-A-Minus). The rating reflects the company's strong market franchise in group life and long term disability, high profitability, and low operating leverage. Also taken into consideration is the significantly improved but still high financial leverage of its ultimate parent, Delphi Financial Group, Inc. (Delphi). Duff & Phelps has also reaffirmed the rating of Reliance Standard's wholly owned subsidiary, First Reliance Standard Life Insurance Company of New York (FRSLIC) at `AA-' (Double-A-Minus). This rating is based on the strength and support of its parent. Delphi recently completed a public stock offering and a public debt offering that netted proceeds of $36 million and $82 million, respectively. Delphi has steadily reduced its financial leverage in the years since acquiring Reliance Standard as evidenced by its fixed obligation ratio improving from 89 percent at yearend 1987 to 44 percent (pro forma) at Sept. 30, 1993. Reliance Standard is a stock life insurance company based in Philadelphia and domiciled in Illinois with admitted assets of $1.9 billion and adjusted surplus of $184 million at Sept. 30, 1993. Reliance Standard's core products are group long term disability income, group life insurance, and individual annuities. The very profitable group disability business, along with group life, serve the company's employee benefits niche market. For many years, these products have experienced lower loss ratios than industry norms and overall results have been less cyclical than those of the industry. The company's individual annuity strategy is to grow its asset base through acquisition of under-valued annuity blocks without incurring expensive marketing and distribution costs. -0- 12/6/93 /CONTACT: John F. Bareiss of Duff & Phelps Credit Rating Co., 312-368-3162/
CO: Reliance Standard Life Insurance Company; First Reliance Standard
Life Insurance Company ST: Illinois IN: INS SU: RTG
WB -- NY088 -- 0865 12/06/93 14:17 EST