DUFF & PHELPS: STANDARD INSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'AA'
CHICAGO, Oct. 4 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a "AA" (Double-A) rating for claims paying ability to Standard Insurance Company (Standard). The rating reflects Standard's success in developing a strong market franchise in group life and long-term disability (LTD) insurance. The company has enjoyed excellent returns in these lines of business resulting in substantial surplus growth in recent years, and a favorable capital position. The rating also considers Standard's above average exposure to California commercial real estate where the company's experience remains significantly superior to the industry. Standard Insurance Company, based in Portland, Ore., is a medium sized mutual life insurance company with assets of $2.85 billion and adjusted surplus of $218 million as of June 30, 1993. Although Standard is licensed in all states except New York, where it is licensed as a reinsurance company, the company's business is geographically concentrated in the western states. Standard has three core insurance divisions: Group, Individual and Retirement Plans. Group accounted for 69 percent of premium and deposits in 1992, followed by Retirement Plans and Individual with 19 percent and 12 percent, respectively. Premiums and deposits totaled $685 million in 1992 and have increased at a 17 percent compound annual growth rate since 1987. This growth is due primarily to continued expansion in the Group division. For the first half of 1993, total premium and deposits were $381 million which is up 14 percent over the comparable 1992 figure. Statutory gain from operations (before taxes and policyholder dividends) more than doubled over the most recent 5 year period, growing from $28 million in 1987 to $69 million in 1992. Through June 30, 1993, gain from operations on this basis was $25 million and somewhat lower than comparable results for 1992 due to an adverse fluctuation in LTD claims experience. Standard has been tracking recent LTD claims experience closely and is positioned to take appropriate action. Overall, Group LTD has had good claims experience. Standard's overall 5 year average return on admitted assets was 2.57 percent on a before tax and policyholder dividend basis, while the five year average after tax return on adjusted surplus was an excellent 11.1 percent. -0- 10/4/93 /CONTACT: John F. Bareiss of Duff & Phelps Credit Rating Co., 312-368-3162/
CO: Standard Insurance Company ST: Oregon IN: INS SU: RTG
WB -- NY049 -- 8280 10/04/93 10:37 EDT
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|Date:||Oct 4, 1993|
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