DUFF & PHELPS: Life Insurance Company of Georgia, Southland Life Insurance Company Claims Paying Ability Ratings Reaffirmed at 'AAA'
CHICAGO, July 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the `AAA' (Triple-A) claims paying ability ratings of the Life Insurance Company of Georgia (LOG) and Southland Life Insurance Company (Southland). Both insurance companies are ultimately owned by Internationale-Nederlanden Groep N.V. (ING). ING is located in the Netherlands and ranks as one of the largest insurance groups and diversified financial services organizations in the world. LOG and Southland are mid-sized life insurance companies. LOG's new sales are derived primarily from home service life insurance and GIC products, while Southland's new sales are generated primarily from universal life products sold through personal producing general agents. Admitted assets as of March 31, 1993, were $2,333 million and $1,059 million, respectively. Both companies exhibit low operating leverage ratios and good quality investment portfolios. Also, both companies benefit from steady earnings and cash flow generated by large in-force books of home service life insurance. LOG provides common operational management to Southland and the two companies are operated as an integrated whole. Statutory profitability of the two companies remained good during 1992, with LOG's results benefiting from expense control while Southland's statutory returns were affected by strain of high levels of new sales and repayment of surplus relief that was being provided by LOG. Southland's return on surplus was a still strong 15.6 percent even with these occurrences. LOG's operating leverage (adjusted liabilities to adjusted surplus) was 5.1 times at the end of 1992 (when adjusted for surplus relief provided to affiliate Security Life of Denver Insurance Company), and Southland's ratio was 5.8 times. LOG's investment portfolio quality improved somewhat during 1992, as problem mortgage investments were reduced. Commercial mortgage loans foreclosed, delinquent and restructured and real estate owned as a percentage of mortgage loans outstanding is well below the ACLI industry comparable figure. Exposure to below investment grade securities was also reduced in 1992. Southland's investment portfolio quality followed a similar pattern of improvement in both its mortgage portfolio and its bond portfolio. -0- 7/19/93 /CONTACT: Kevin A. Ceurvorst of Duff & Phelps Credit Rating Company, 312-368-3144/
CO: Life Insurance Company of Georgia ST: Georgia IN: INS SU: RTG
CK -- NY060 -- 3078 07/19/93 13:04 EDT
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|Date:||Jul 19, 1993|
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