DELTA LIFE AND ANNUITY COMPANY CLAIMS PAYING ABILITY RATED 'AA-'
CHICAGO, March 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the claims paying ability of Delta Life and Annuity Company (Delta) at `AA-' (Double-A-Minus). The rating reflects the company's excellent asset quality, positive liability characteristics, and unique interest crediting policy. Factors also contributing to the rating are Delta's moderate size and the fact that annuities are the company's only product line. Delta is a stock life insurer based in Memphis Tenn. with total admitted assets of $879 million and adjusted surplus of $49 million at Dec. 31, 1992. The company is the primary subsidiary of Delta Life Corporation. Since year end 1992, an additional $5 million of surplus was added to Delta from capital raising activities at the parent level. Delta sells annuity products through approximately 1,800 licensed independent agents located in targeted geographical areas, who utilize Delta's annuity products for their clients' long term financial planning needs. Delta has excellent asset quality. Bonds represented 79 percent of total invested assets at Dec. 31, 1992. Over 99 percent of the bond portfolio was invested in securities issued, secured, or guaranteed by the U.S. Government, government agencies, or instrumentalities. Mortgage loans made up 17 percent of total invested assets at year-end. Most loans were made on small, owner-occupied properties with recourse to the borrower or guarantor. Delta's mortgage portfolio has substantially out-performed life insurance industry norms. Policyholders receive all interest the company earns less a contractually-stated management fee. Delta's policy liabilities are designed to offer the company considerable withdrawal protection. Annuities with a surrender charge or annuities not subject to withdrawal represented 66 percent of Delta's annuity and deposit reserves at year- end 1992. -0- 3/29/93 /CONTACT: Julie A. Burke, CPA of Duff & Phelps Credit Rating Co., 312-368-3158/
CO: Delta Life and Annuity Company ST: Tennessee IN: INS SU: RTG
LR -- NY083 -- 9621 03/29/93 14:53 EST
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|Date:||Mar 29, 1993|
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