DUFF & PHELPS: SECURITY MUTUAL LIFE INSURANCE COMPANY OF NEW YORK CLAIMS PAYING ABILITY REAFFIRMED AT 'AA-'
CHICAGO, June 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned the claims paying ability of Security Mutual Life Insurance Company of New York (SMLIC) at `AA-' (Double-A-Minus). The rating reflects SMLIC's conservative management, high quality investment portfolio, and adequate expense control. Factors also contributing to the rating are SMLIC's size, operating leverage and the need to improve sales momentum. SMLIC is a regional, mutual life insurer based in Binghamton, New York with admitted assets of $1,086 million and adjusted surplus of $60 million as of December 31, 1992. SMLIC concentrates on the sale of individual life insurance to the closely-held business, professional, and estate planning markets. The company's individual insurance products include traditional whole life and term life, as well as interest sensitive products such as universal life and annuities. SMLIC also selectively markets group life, group disability, and individual disability insurance. Premium income and deposits have declined from $212 million in 1991 to $205 million in 1992 primarily due to a decline in pension deposits. Statutory gains from operations (before taxes and after policyholder dividends) held steady at $6 million. As a mutual company, SMLIC must rely on internally generated profitability to grow surplus for the long term. Capitalization has increased in 1992 by 7 percent. Operating leverage for 1992 of 16.70 times is moderately high for the mix of businesses and compared to similarly rated companies. Return on admitted assets was 2.05 percent in 1992 compared to 2.20 percent in 1991 while return on adjusted surplus improved to 4.3 percent in 1992 from 1.7 percent in 1991. -0- 6/7/93 /CONTACT: Sandra A. Seidl, CFA, of Duff & Phelps Credit Rating Co., 312-368-3116/
CO: Security Mutual Life Insurance Company of New York ST: New York IN: INS SU: RTG
LR -- NY044 -- 5996 06/07/93 11:39 EDT
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|Date:||Jun 7, 1993|
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